UK-based camera retailer Jessops has filed a notice of intent to appoint administrators after being severely hit by the country’s lockdown restrictions.
The company has appointed advisory firm FRP to restructure its business. This is the second time in almost a year that Jessops has filed such a notice.
The notice grants Jessops ten days of protection from current or pending creditor claims.
The company, which is owned by Dragons’ Den panellist Peter Jones, currently operates 17 stores with 120 employees.
Jones’s PJ Investment Group acquired Jessops in 2013 after it had gone into administration. In 2019, the company closed more than half its stores.
FRP partner Geoff Rowley said: “Jessops is a long-established British brand, but like many others, it has faced growing online competition, as well as the challenges faced by all High Street retailers in operating through the restrictions imposed during the pandemic.
“We are working closely with PJ Investment Group and the wider Jessops management team to consider all options to secure a future for the retailer.”
The retailer is looking at a Company Voluntary Arrangement (CVA), an insolvency process that would allow it to reach an agreement with its creditors to pay off all or part of its debts.
This would mean Jessops’ landlords would have to accept a percentage of its revenue for their rent, instead of relying on a fixed lease.
The retailer is set to keep operating after UK lockdown restrictions are relaxed next month.
Last week, UK-based department store chain John Lewis announced it will permanently close eight retail stores in the country.
The retailer is to close four of its At Home shops in Ashford, Basingstoke, Chester and Tunbridge Wells and four department stores in Aberdeen, Peterborough, Sheffield and York.