Even with a turnover in the year to December 31 2012 of £236m, major high-street retailer Jessops has announced that its appointed PricewaterhouseCoopers (PwC) as administrators to the struggling business.
The well-known brand has 192 stores and around 2000 employees throughout the UK, Jessops has seen a significant decline in 2012 and forecasts for 2013 indicate that this decline would continue according to PwC. This hasn't been helped in the run-up to Christmas, with Jessops not generating the profits it had planned.
Rob Hunt, joint administrator and partner, PwC said:
"Over the last few days the directors, funders and key suppliers have been in discussions as regards additional consensual financial support for the business. However these discussions have not been successful. In light of these irreconcilable differences the directors decided to appoint administrators and we were appointed earlier today.
"Our most pressing task is to review the Company's financial position and hold discussions with its principal stakeholders to see if the business can be preserved. Trading in the stores is hoped to continue today but is critically dependent on these ongoing discussions. However, in the current economic climate it is inevitable that there will be store closures."
At the time of writing Jessops is not in a position to honour customer vouchers or to accept returned goods.