Camera retailer Jessops agrees rescue plan
Camera retailer Jessops has today secured a deal that will save the company.
The struggling retailer has been hit by a shift to digital photography and the economic downturn which has meant it has been fighting to survive.
The company, which trades from more than 200 stores in the UK, is undertaking a solvent restructure that will see its largest creditor HSBC, acquire 47% of the company, with the remainder owned by pension and employee trusts.
In return, HSBC will forgive the £34 million of debt that Jessops owes it.
The agreement will allow for £100,000 to be made available to shareholders. Earlier this year, the company said it was unlikely that shareholders would realise any value from their equity.
Commenting on the agreement, Jessops chairman, David Adams, said: “Thanks to the continued support of HSBC, the restructuring proposal will ensure that Jessops Group Limited remains a fundamentally strong business with a strong presence on the High Street.”
“Unless the proposal is completed the directors will have no choice other than to implement an insolvency procedure which will leave less value for creditors and no value for shareholders,” added Jessops.
According to Jessops, the deal will protect the jobs of approximately 2,000 employees.
Last month, the group posted a 4.7% decline in sales in the 12 weeks to August 16, and at the time, said it expected to report a loss for the full-year.