Jessops announced that it would enter administration. The company was one of the last-standing camera retailers in the United Kingdom before entering in administration.
After years of struggling to compete against online retailers, Jessops has entered into administration. A decrease in sales caused the camera retailer to go into administration, while PricewaterhouseCoopers has been named administrator.
This can be considered a sad period for the photography industry because one of the oldest partners of camera makers has decided to close its business. As expected, the biggest reasons for the company’s downfall have been pointed out as the rise of online stores and the decrease in camera sales in recent times.
The price of today’s technology
Jessops camera retailer first opened a store back in 1935, in Leicester, UK, and has nowadays reached a total of 192 stores across the United Kingdom, with more than two thousand employees. Even though it is one of the most popular brands in England, the camera chain found it hard to compete against online retailers.
More and more people are shopping online because it is more convenient and users can pay with their card. Furthermore, internet surfers can read reviews online, check to see what camera is best for them and then have the products delivered right to their door.
Still hoping for a positive outcome
PwC’s joint administrator said the company is planning to review Jessops’ financial assets in order to determine whether it is still viable to continue its business. If Rob Hunt and his partners decide that the business can become profitable, then Jessops will be allowed to carry on.
Mr. Hunt added that store trading will go on, though some stores will be closed forever. In addition, all vouchers will be declined, while returns will no longer be accepted. The administrator is hoping consumers will understand the situation.
Blow after blow
Begbies Traynor, a business recovery group, specified that the administration should not be viewed as a hope of deliverance, because January is considered a “high-risk” month. The competition is stronger after December 25th, since most retailers are dropping their prices.
Julie Palmer stated that consumers lose confidence in a retailer when it enters administration, therefore it is very hard for Jessops to make a comeback. The camera equipment retailer is the first company on High Street to enter in administration, in 2013.
As stated above, this ordeal may have a positive outcome after all, albeit it is looking unlikely. We will monitor the situation in order to keep you updated about this story.