Jessops

[Phil]

What's the score?

[Black Pearl]

From the Administrators:

Edward Williams, Rob Hunt and Matthew Hammond of PwC were appointed joint

administrators of The Jessop Group Limited on 9 January 2013.

Jessops is a major high- street retailer of photographic equipment and growing on line business. Turnover in the year to 31 December 2012 was £236m and Jessops operated from 192 stores with around 2000 employees throughout the UK. It has a well-known brand, strong reputation for service and a significant national footprint.

However, its core marketplace has seen a significant decline in 2012 and forecasts for 2013 indicate that this decline would continue. In addition, the position deteriorated in the run up to Christmas as a result of reducing confidence in UK retail. Despite additional funding being made available to the company by the funders, this has meant that Jessops has not generated the profits it had planned with a consequent impact on its funding needs. This was exacerbated by a credit squeeze in the supplier base.

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.”

Finally, at present Jessops is not in a position to honour customer vouchers or to accept returned goods.

[annie]

it's terrible.......

[Guest DaveW]

Hope you come out of it OK anyway BP. However it was obvious for years Jessops could not keep borrowing to prop the firm up. Turnover is immaterial, it is profit that counts. Better for a business to make a profit of £100 on a £10,000 turnover having only a single shop, than a £1000 loss with a £236 million turnover on 192 shops. Companies often get carried away by size and turnover rather than profits. Jessops ought to have moved on to the Internet and off the high street years ago as that is where sales were increasing. High street shops now bear too large a business rates to be competitive with Internet based operations from warehouses on industrial estates simply using web sites. Anyway good luck I hope somebody does buy your shop. http://www.amateurph...ports-0-9m-loss http://www.thisislei...tail/story.html Sorry can't format the lines as after working OK all day return key has locked up again on this board? http://www.bbc.co.uk/news/business-20958659

Edited January 9, 2013 by DaveW

[Guest]

not good news for you BP, hope you personlly get a positive end result BP

[Guest DaveW]

The following link sums up Jessops problem, to quote:-

"Neil Saunders, retail analyst at Conlumino, explained the root of Jessops' problems.

The amateur market collapsed because people who once bought cameras found that they had these things on their smartphones and they used those instead, and the professionals found that they could use online niche specialists who were cheaper and often had more extensive ranges," he said. "So both migrated away from Jessops."

http://www.bbc.co.uk...siness-20958659

Jessops were originally thee discount seller of photographic equipment, undercutting traditional photographic shops. Unfortunately the Internet took over as the discounters with Web sites selling direct from warehouses on cheaper industrial estates, not having the expense of keeping up excessively business rated high street shops.

Jessops should have moved onto the Internet many years ago and closed their high street outlets just as many other former discount chains like Comet found out. Unless high street retailers get the same rent and rates as charity shops are being given, apart from those selling luxury goods, many will go through as they cannot compete with the Internet.

One other problem for photo retailers is photography has changed. In the past photo retailers made probably as much of their profits selling film, printing paper, chemicals and darkroom equipment or providing developing or printing services as just selling cameras, lenses etc. Digital changed all that as that sector has now virtually disappeared.

The main thing that has kept photo shops going so far is the megapixel race, where unlike a film camera that could use the latest film, so no need to upgrade, you could not change the sensor in your digital camera for a better one therefore had to upgrade.

However megapixels are about to hit the buffers as it is suggested even for full frame 35mm digital cameras 30 megapixels is about their limit due to engineering tolerances required and lenses not being able to resolve more. With smaller sensors their megapixel limit has probably been reached. Once this occurs we are back to the film camera days where there is no point keep upgrading your camera so once you have got all the lenses you need no point in swapping these either because they don't fit a new camera. This will really hit the photographic firms as unlike film days they have no film, chemicals, developing or darkroom sales to fall back on.

Hope everything comes right BP, but I think the time is now right to get out of the photo industry if you can, possibly managing some other shop not so Internet threatened.

Edit: Cannot understand this board. I originally posted the above and could not use the return key to format it. I posted on another thread and the return key worked. Came back to this thread again and was able to format it using the return key to split it up into paragraphs again. I am not getting this problem on any other site?

DaveW

Edited January 10, 2013 by DaveW

[Phil]

Sorry still cannot use the return key on this board, and even pasting it in like this was done still looses the original formatting.

It is indeed an issue with the board software. I need to perform an upgrade to the latest version but as yet I'm unsure how this will affect our existing skin set up. Bear with me :)

[Guest DaveW]

See:- http://www.guardian....ion-staff-react Basically with all industries it is return on capital that counts even if a firm makes a profit, which seemingly Jessops did not. You will not continue investing your millions in a firm that say makes a 1% profit on it if you can invest it elsewhere where they make a 10% profit for you. People forget firms are not there to provide employment, except for the person who starts them, but are there to make the maximum profits for the owners and shareholders. If they have to employ people to maximise their returns they will do so. If they can put in a machine to replace people at a lower cost they will do that too, and as soon as they can get a better return on their money elsewhere they will close the firm down and employ the capital more profitably. Any firm that ignores that will usually go bankrupt anyway since the only people who can subsidise jobs are governments at the taxpayers expense using public sector employment, the private sector cannot. As with the chap who started Jessops everybody is free to start their own firm, either using their own money, or if they can convince others to lend them theirs. However as said above those that lend money to companies either banks or as shareholders want returns on it comparable with what they can get elsewhere or will pull the plug, that is what has happened with Jessops. One of those managers in the link says they always did brisk business, great but was his branch making a profit, or after taking in all the costs of running their shop and level of profits on the items they sell were they in fact making a loss? There used to be a joke in the Building Trade that a firm was making a sixpence loss on everything they sold. Asked how they could afford to do so they replied it was only because they had such a large turnover! I think the preoccupation with size, market share and turnover rather than actual profits trips up many firms in recessionary times. Jessops simply grew too quick in the end I am afraid and opened too many shops. Lets hope some of the shops like BP's can be saved and put on a more sound financial footing, but I fear the Internet will eventually decimate the high street since due to shop overheads they cannot compete with firms like Amazon. Business like nature is survival of the fittest since you cannot force customers to use you instead of cheaper competition.

Edited January 10, 2013 by DaveW

[Leon]

good luck BP hope all is well for you in the future :)

[Heather]

good luck BP i hope you manage to come out of this ok x

[annie]

i can only add to the good luck wishes.....having been a victim of these things three times i know how hard it is to suffer the consequences.

here i sit with no job at all and no prospects of finding one, and all i have been thinking of is robin....strange how we make friends over the internet and actually concern ourselves with people we have never met nor ever will....i look at it like having a pen pal, only in modern techie times.

[Guest DaveW]

Latest information on the Web, many different opinions:-

http://news.sky.com/story/1036225/jessops-purchases-halted-on-website

http://www.guardian.co.uk/money/2013/jan/10/jessops-closure-customers-adrift

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/9794019/Former-Jessops-chairman-blames-HSBC-for-collapse.html

http://www.which.co.uk/consumer-rights/buying-services/company-going-bust-qanda/

http://conversation.which.co.uk/technology/jessops-goes-into-administration-bust-your-rights/

http://www.retail-week.com/sectors/electricals/comment-jessops-dullness-was-its-downfall/5044679.article?blocktitle=Retailer-in-the-news:-Jessops&contentID=7926

http://www.retail-week.com/sectors/electricals/comment-jessops-failure-reflects-declining-market/5044628.article?blocktitle=Retailer-in-the-news:-Debenhams&contentID=7926

http://marketingblogged.marketingmagazine.co.uk/2013/01/10/shutters-close-on-jessops/

Not only are Jessops staff probably going to be affected, but photographers having their vouchers, or who have paid for equipment not yet delivered, or faulty equipment to return. No doubt BP will be able to update us on the situation later.

[Black Pearl]

I've no solid info as yet.

State of play is the company is being run by the administrators who have issued guidelines as to what we can and can't do. These are being reviewed constantly but while in place are set in stone and nothing we can do will change them.

Not all of this will be seen as positive and unfortunately Jessops is going to take the brunt of it even though it isn't us making the decisions.

When I say Jessops what I actually mean is the staff, I have had an emotional roller coaster of a day. Some people have been fantastic, really amazing and I thank you and them all. I've had messages here, on other forums/chat sites etc and I've had people taking the time to call into the store to say they were devastated by the news and that they hope all will be well for all affected. Unfortunately both myself and my staff have had to put up with people who have come in simply to be nasty, first customer this morning came in to get a refund on a voucher he knew in advance he couldn't get. He shouted, swore threatened and ended up saying he hoped everyone in the store lost their jobs, their homes, wives and entire future.....his voucher was worth £15. The rest of the day has swung somewhere between those extremes. I fully understand their frustrations but our hands are tied and threatening staff who are looking at a possible loss of a job is unfair to put it mildly.

Oddly Jessops have just had one of the best trading days in months with massive like-for-like growth and huge numbers across the board - I hope that sends a strong message to any investors that UK customers still have enough confidence to not only come into town centres and retail parks but to be told of our problems, be warned of return issues and still part with cash.

I've had a sleepless night that I guess will be the first of many, my staff are suffering the same. I can only hope the powers that be sort something out between our supply chain, investors and the bank so the company can continue in some shape or form. What shape if any that will be is out of the hands of the staff so all we can do is continue to put money in the tills, give the very best service we possibly can and try to stay positive.

BP

[FUJI]

Hang in there BP, don't let the Bs get you down.........................please stay the strong and positive guy we all know you are and you will get through it eventually.

My thoughts are with you and your family...................and for all Jessop's staff:

FUJI

[annie]

let's hope they pull something out of the bag.......it's very hard to do but try to stay positive xxx

[Guest DaveW]

Anybody who followed stock market comment for the last couple of years would have known Jessops was on borrowed time. It has been staggering from one financial crisis to another since 2008. Camera shops were cushioned from the loss of trade with the eclipse of the film camera and related sales of film, chemicals and darkroom equipment by the initial bubble in digital camera sales. However it was always inevitable mass digital camera sales would eventually decline back to the similar levels of film cameras in the past when the megapixel race ran out. Film cameras were seldom changed by the general public and many were often handed down to the next generation. Now the smart phone has replaced mass conventional camera sales, but unlike film camera days the photo shops have no repeat film, chemical, printing papers or darkroom equipment sales to fall back on. Neither are they the suppliers of the digital darkroom, such as printers, printer ink, computers etc. That is now the PC Worlds and stationers etc on the high street. Neither do they usually sell the smart phones that have replaced mass camera sales. Enthusiasts like us may still use the higher end cameras, but the previous mass buying camera section of the general public will be using smart phones in future with no need to ever go near a specialist camera shop again. Neither will many of us photographers either, since we too have got used to using online discount warehouses rather than paying high street prices inflated by the need to pay expensive shop rents and excessive business rates on them. I am afraid all industries change in time as history shows, however in the past the pace was slower so employees were less quickly affected and few had to change industries very often, unlike todays youngsters who may have to change their occupation three or four times during their working lives since that is the price we pay for the quicker changes in modern technology. I was affected as a bench joiner when virtually all outside woodwork was replaced by UPVC. I had to move onto jobbing building etc. You have to recognise the situation will not change and move on to another niche where you can obtain a living. You can't prevent people using cars and insist they still use horses to keep blacksmiths or fodder providers in business. These old trades inevitably decline to the small niche level still available with the majority going out of business. We have to face it, the boom in cameras, both film and digital is now over, just as the boom in PC's is. People have moved on to smart phones and tablets. Anyway BP I hope you are OK, but I fear the mass market conventional photo shop is on its last legs and only the very few catering for the enthusiast market will exist far into the future, and I sincerely hope yours is one left. The rest of the world will have moved onto the smart phone. Who knows even the professional journalists when they are good enough in future. Even we photographers now tend to buy our cameras and lenses from discount warehouses on the Internet rather than pay inflated high street prices, necessitated by high shop rents and excessive city business rates. http://www.guardian....hallenging-2013

Edited January 11, 2013 by DaveW

[Black Pearl]

Edited

[NannyFerret]

.strange how we make friends over the internet and actually concern ourselves with people we have never met nor ever will....i look at it like having a pen pal, only in modern techie times.

So true, Annie. I feel for anyone in this position as my hubby was made redundant with Massey Fergerson when our three kids were young.

I think the worst was when they were only working one or two half days a week and while he was getting that little bit of money each week, we couldn't get any help towards rent etc.

Good luck to you Black Pearl and to anyone who is or has been laid off, especially those with a mortgage to pay or a young family to support.

[Guest Lee]

I'm in Annie's camp here. Made redundant in 2011 and still jobless with no benefits. Hope it all works out for you and something crops up.

[Denis]

Unfortunately, I spend all my time wondering what is around the corner. My current job being connected to the construction industry. Mrs Chronikon has had her job downgraded four times now, and is on just half the money she earned previously. Staring 60 in the face with an endowment mortgage that failed, does not give you any great outlook on prospects!

I really do hope something can be salvaged from your predicament BP, I will wish you well, along with the rest of the board.

Crap.....I have just read the BBC news webpage, So sorry BP

Edited January 11, 2013 by ChroNikon

[Black Pearl]

Closed the doors at 4:30.

That is the end of Jessops.

[Guest DaveW]

Yes just announced. Sorry BP, best of luck finding something that still has a future, not sure most of the high street has though:- http://uk.finance.yahoo.com/news/jessops-close-stores-164259398.html

[geodar]

being an MP is the way to go, 32% pay raise, wage upto 86k plus anything else they get. makes you think eh?

say cheese and smile :thumbup:

Edited January 11, 2013 by geodar

[KateW]

So sorry, BP.

[Heather]

so sorry Robin really hope something turns up for you very quickly