Jessops

Jessops (Group) Limited is a British photographic retailing company. It was established in 1935 by Frank Jessop in Leicester, United Kingdom. The company controls Jessops Europe Limited, which in turn control JR Prop Limited (formally Jessops Retail Limited).

In the end of the 2000s, the business struggled with insolvency, and entered administration in January 2013. The company was rescued by PJ Investment Group, founded by entrepreneur Peter Jones CBE who bought the assets, and formed Jessops (Group) Limited, and related companies.

History

Frank Jessop founded Jessop of Leicester in 1935, as a specialist photographic retailer. The company expanded to major towns and cities. Alan Jessop, Frank's son, sold the firm in a management buy out in July 1996. This was to Bridgepoint Capital.

Bridgepoint Capital attempted to float Jessops on the London Stock Exchange in September 2000, but abandoned plans the following month. This was because it was told the firm would list with a market value of £90 million to £100 million. The two hundredth store, Durham, opened in July 2001, which has since closed down. Jessops once again abandoned plans to float, in April 2002.

ABN Amro paid £116 million for the company, in September 2002. The sale was completed the next month. ABN Amro applied to float on the London Stock Exchange in October 2004, which successfully occurred the next month. In May 2004, the main warehouse relocated to Weedon Bec, Northamptonshire, as the warehouse in Leicester was considered too small. This resulted in most of the staff being made redundant.

In August 2020, Jessops, which had one shop in the city centre of Nottingham, announced that the location had been completely shut down, after the sign was stripped, and replaced in black pigment. The COVID-19 pandemic was cited as (one) reason for the closure, by the company.

Financial problems (2007–2013)

The company suffered financial difficulties by June 2007, requiring the strategic review, and eventually leading to a re financing with its bankers, HSBC, in September 2009. This led to the group's trade being transferred to a new holding company, Snap Equity Limited, whilst Jessops plc was placed in liquidation and the group's final salary pension scheme transferred to the Pension Protection Fund.

Snap Equity was formed as a private company, 48% owned by HSBC, 33% by pension trustees, and 20% by an employee trust. On 21 June 2007, Jessops announced the closure of 81 of its then 315 stores, as "part of a strategic review, which aimed to save the Leicester firm £15m". HSBC acquired the company circa September 2009, in a "debt for equity" deal. The ''Financial Times'' commented that the company was hurt by the quality of mobile phone cameras, reducing demand for traditional cameras.

On 9 January 2013, Jessops went into administration, with an application made to the High Court. On 11 January, it was announced that all 187 stores would close, with the loss of 1,370 jobs. Shoppers who put anywhere up to £500 on a gift card, found them useless, and the company ceased to accept customer returns, although manufacturers' warranties on products ''not'' branded by Jessops, were not affected.

On 31 January 2013, however, the brand of Jessops, and various assets, were acquired by PJ Investment Group owned by entrepreneur, Peter Jones, one of the investors from the television programme, ''Dragons' Den''. Various new companies were incorporated including Jessops (Group) Limited, Jessops Europe Limited and Jessops Retail Limited. Jones also incorporated ''Jessops Online Limited'', at the same time.

On 3 February, the supermarket retailer, Morrisons, agreed to purchase seven of Jessops larger store sites, from the administrators, for an undisclosed price, to be converted to the convenience store format by Morrisons, M Local.

Reopening

On 28 March 2013, six stores reopened, and Jessops aimed to open a new store every day on average during April 2013. One of the six opened on the 28 March, the store in Oxford Street in London, received considerable media interest, and was attended by several celebrities, including the actor James Corden. Another store in London, Birmingham, Manchester, Aberdeen and High Wycombe were the other five.

St Albans opened on the 29 March. Several other stores reopened throughout April. All the new stores contained a mini labs, offering same day processing of photographic film. The company had reopened twenty eight stores across the United Kingdom, by September 2013. Jessops signed a landmark deal with Sainsbury's in July 2014, to start opening Jessops branches in its larger stores, the first of which opened in October 2014. There were fifty two stores of Jessops, by April 2016.

ReSolve were appointed as administrators for JR Prop Limited, in December 2019. This company holds property leases and employs retail staff, the main trading company, Jessops Europe Limited, was ''not'' affected.

On the 26 March 2021, Jessops announced that were considering a Company Voluntary Arrangement (CVA) which would allow it survive. PJ Investment Group is offering to provide additional financial support if management can come up with a sustainable business plan. On 27th August 2021 Jessops successfully secured 100% approval of the CVA and PJ Investment Group invested several million pounds into the business in order to provide sufficient capital to grow the business.

References

External links

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Companies based in Leicester
Photographic retailers
Consumer electronics retailers of the United Kingdom
Companies formerly listed on the London Stock Exchange
Photography companies of the United Kingdom
Companies that have entered administration in the United Kingdom
Retail companies established in 1935
Retail companies of the United Kingdom
1935 establishments in the United Kingdom
2004 initial public offerings