Jessops in talks to renegotiate debt facility

Fred Dawson

Fred Dawson

Messages
231
Name
Fred Dawson LRPS
Edit My Images
Yes
FT reports

Jessops in talks to renegotiate debt facility
By Gordon Smith

Published: January 30 2009 09:12 | Last updated: January 30 2009 09:12

Jessops, the photographic equipment retailer, is close to breaching its banking covenants it emerged on Friday.

The retailer, which has 230 stores across the country, said it was in discussions with HSBC, its lender, to renegotiate debt facilities after it failed to pass a crucial test of trading performance.
http://www.ft.com/cms/s/bd7b72a8-ee...2ac.html&_i_referer=http://www.ft.com/home/uk
 
This doesn't sound good.
Although I don't rate them due to the lack of Knowledgeable staff that I have dealt with, I certainly don't want to see yet another big named UK retailer go down the pain and hundreds of job losses.
However, in this day and age and current financial climate, we are not going to pay retail prices when there are good savings to be made online.

We've all heard how tough retailers have been finding things since the internet e-tailer boom and I think things will get much worse for them.
 
Last edited:
sad but i suppose inevitable really. My local one is not good at all, looks like its already shutting down, however, I'm not familiar with all branches, I know of people with very successful purchases off Jessops. Good luck with the Bank Jessops.....
 
I've bought three cameras form Jessops in recent times. A 350D for my daughter and a 40D and a G9 for me. To be honest the lads in the shop (the Trafford Centre) were great.

There have been threads on here lots of times (I've started at least one myself) saying that if we togs continue to penny pinch when we buy our gear and just use Jessops and the like to look at gear and try it out in the shop, then run home and buy from a place in Hong Kong because it's 50p cheaper we are bound to lose our shops.

Its the way of the world I suppose.

So when Jessops have gone, where will we all go to look at the new camera models and how will we try a new lens on our existing bodies? How will we be able to decide on which tripod to buy? Where will we be able to try out 30 compacts to see what the shutter lag is like when we need one?

What will we all do when our wives/husbands want to go in to Boots and look at hair products?

We're all doomed! and it's mostly our own fault! Long live Jessops!
 
I can't help but wonder if all this speculation is doing Jessops significant damage as well.

Constant 'are they going under?' questions cannot have a good impact on a company - customers will wonder whether to risk buying from them, suppliers will worry about accounts being settled and lenders will be edgy.

It's a self fulfilling prophesy I'm afraid, and it's a great shame.

James
 
Badger UK said:
There have been threads on here lots of times (I've started at least one myself) saying that if we togs continue to penny pinch when we buy our gear and just use Jessops and the like to look at gear and try it out in the shop, then run home and buy from a place in Hong Kong because it's 50p cheaper we are bound to lose our shops.!
Click to expand...

I do agree with you somewhat but compared to Jessops price, I've just saved myself £70 on a Canon 10-22mm by buying it from another UK based seller.
Yes perhaps it is a grey import but I have no worries as I know the seller will deal with any warranty issues.
I think most people wouldn't be bothered with trying to save 50p and I for one wouldn't be bothered paying £10 more for an item on the high st.
However, we are looking to tighten the purse strings even more so with the current financial climate.
I normally buy expensive kit via the high st. because it's easier if I need to make a warranty claim.
I bought my Canon 450D from Jessops because with the cashback, I felt the small difference in cost was worth it.
However, when it comes to a saving of £70, I'm sure most people would do the same.

Anybody with a clue will normally buy IT kit from other places because PC World are quite often more expensive.
Retailers overheads are much higher than e-tailers so obviously they will suffer.

Think back to when a lot of us weren't happy about the big supermarkets started putting the high st. butchers, bakers and the milkman out of business.
We weren't happy at the time but it's been a long time since I have heard anyone complain about the savings they make buy purchasing these goods at the supermarket.

It makes me wonder how the small independent photographic shops are going to survive.
I just couldn't justify paying the prices quoted to me buy two of these.
It's a shame because I would much rather support someone who has been in the trade for years and knows their stuff rather than some Director who is probably getting a salary of 80K plus.

Of course the problem with us being able to try different lenses will be a real pain if these bigger chains to ended falling by the wayside.
Bodies are one thing as a lot of electrical retailers tend to sell them but a lot of them don't sell accessories.
 
foodpoison said:
We get people cracking jokes about Jessops' future all the time. It certainly doesn't do me nor my colleagues any good.
Click to expand...

I feel for you and your colleagues, I really do.
I'm sure we all agree that we would like to see Jessops pull through this and that you all keep your jobs.
 
Moos3h said:
I can't help but wonder if all this speculation is doing Jessops significant damage as well.

Constant 'are they going under?' questions cannot have a good impact on a company - customers will wonder whether to risk buying from them, suppliers will worry about accounts being settled and lenders will be edgy.

It's a self fulfilling prophesy I'm afraid, and it's a great shame.

James
Click to expand...

I think people are only speculating because they have read the press reports.
I know it's not related to Jessops but with Zavvi going down and failing to honour their gift vouchers, people are only going to be more cautious when they hear such rumours about other retailers.
 
hashcake said:
It makes me wonder how the small independent photographic shops are going to survive.
Click to expand...

There is a danger that they won't survive. If they do it will be on service levels I suppose.

And don't forget that in many cases, the supermarkets are not cheaper. They are cheaper on the items that it suits them to be cheaper on, and you wil be aware that they use all kinds of devious pricing methods. Buy one get one free and the like when really the price of one is almost double the price it should be. We need to have your eyes wide open when buying from supermarkets.

It is possible that this will become the case with the photographic e-tailors too. Once there is no option but to buy on-line they will be able to turn the heat up on pricing and we could end up paying more. Who knows.

Anyway......

Let's just hope that Jessops survives. I for one quite like the place.
 
Badger UK said:
There is a danger that they won't survive. If they do it will be on service levels I suppose.

And don't forget that in many cases, the supermarkets are not cheaper. They are cheaper on the items that it suits them to be cheaper on, and you wil be aware that they use all kinds of devious pricing methods. Buy one get one free and the like when really the price of one is almost double the price it should be. We need to have your eyes wide open when buying from supermarkets.

It is possible that this will become the case with the photographic e-tailors too. Once there is no option but to buy on-line they will be able to turn the heat up on pricing and we could end up paying more. Who knows.

Anyway......

Let's just hope that Jessops survives. I for one quite like the place.
Click to expand...


You have raised two very interesting points.
The price fixing scandals with the supermarkets also come to mind.
Lets all just hope the hight st. does survive and the e-tailers don't gain a monopoly.
 
hashcake said:
You have raised two very interesting points.
The price fixing scandals with the supermarkets also come to mind.
Lets all just hope the hight st. does survive and the e-tailers don't gain a monopoly.
Click to expand...


Here here!

and just think how crap it would be if there was no Waterstones? Imagine only having the choice of books that Tesco and ASDA sell. What if HMV and ZAVVI disappeared (and yes I realise ZAVVI just might) and all we had was the supermarkets for our CD's and DVD's.

Because as you will know, Amazon isn't often any cheaper once you add the cost of post in to the deal.

and I'm hoping we haven't opened a can of TP worms here, and in someways, I may be hoping we have..... hahahahaha
 
:(

All we will be left with pretty soon are Supermarkets and the Internet. I'm surprised no-one has raised the web issue before as it has had a major impact on how we all shop.

Best of luck to Jessops, let's hope HSBC back them on this one.
 
Remember, before feeling sorry for Jessops themselves were the cause of many small bricks and mortar photographic retailers going to the wall in the not-so-distant past...



Badger UK said:
Because as you will know, Amazon isn't often any cheaper once you add the cost of post in to the deal.
Click to expand...

Amazon do free shipping on all orders over £5 in total value....
 
the undertaker said:
sad but i suppose inevitable really. My local one is not good at all, looks like its already shutting down, however, I'm not familiar with all branches, I know of people with very successful purchases off Jessops. Good luck with the Bank Jessops.....
Click to expand...

Same here, really. Whenever I go into Jessops, I leave empty handed - There's absolutely nothing in the windows, where there used to be a whole host of second-hand equipment.

The equipment that's on show isn't really a decent range and they don't have a catalogue to take away and browse?

I'd love to see Jessops stay open, but it's these things that put me off, rather than the threat of them shutting.


Good luck, Jessops! :)
 
I'd just like to say that I have purchased 2 lenses from different Jessops in the last 6 weeks.

Their prices were the best in the UK and service from both was excellent.

Chin up foodpoison:)
 
Last edited:
Bean said:
Same here, really. Whenever I go into Jessops, I leave empty handed - There's absolutely nothing in the windows, where there used to be a whole host of second-hand equipment.

The equipment that's on show isn't really a decent range and they don't have a catalogue to take away and browse?
Click to expand...


In many ways you are right, but it's a very complicated situation. It depends how far you go back to look for the start of this. It can be argued that the shops have only been poor in recent times since they have been under the cosh. So although I see what you are saying, its all part of the same underlying cause and I have no idea what can be done about it.

Other than.....

May be the manufactures could may be have a big showroom in major towns where we can go and look but not buy. Then go home and find the place with the best price. It would be funded by the OE's themselves because presumably they get the sale from where ever the kit is purchased.
 
I have a feeling they'll be fine. I really hope so because I've been quite critical of them in the past but recently they've been really good to me.
 
Badger UK said:
May be the manufactures could may be have a big showroom in major towns where we can go and look but not buy. Then go home and find the place with the best price. It would be funded by the OE's themselves because presumably they get the sale from where ever the kit is purchased.
Click to expand...


I wonder if the reported Canon/Jessops tie-up will come to fruition, with the retailer effectively running Canon-only camera stores....
 
Badger UK said:
...To be honest the lads in the shop (the Trafford Centre) were great.

...and buy from a place in Hong Kong because it's 50p cheaper... Its the way of the world I suppose.

So when Jessops have gone, where will we all go to look at the new camera models and how will we try a new lens on our existing bodies? How will we be able to decide on which tripod to buy? Where will we be able to try out 30 compacts to see what the shutter lag is like when we need one?
Click to expand...
It is sad, in a way. But I think it's inevitable. The savings to be had online are usually significantly better than 50p, otherwise people would be happy to use the high street stores.

But the quality of information and advice available online is also better than you can get in the High Street. You were lucky, and there are definitely some good salespeople out there. But there are also a lot of poor ones. And, good or bad, they all have a vested interest in selling to you.

The review sites on the net don't have that. Their competition is other review sites. To succeed they need to give high quality, unbiased accurate advice. And if they get it wrong, there's no shortage of expertise in the forums to point it out.

If the prices online cheaper, and the advice is better, it's difficult to see much of a future for Jessops etc. For most photographic kit, I'm prepared to buy unseen. For major purchases like cameras, there will always be a way to get see one. It'll become more difficult than it is now, but the cold truth is that's a price I and a lot others are prepared to pay.
 
I think there are two ways a customer looks at a purchase, either by cost or availablility. The internet is the winner as far as cost is concerned 90% of the time. Unforunately of late, Jessops haven't been able to compete in the availability stakes which is a big shame.
Many people will still prefer to be able to just go out and purchase off the shelves and not have to wait for delivery therefore I could see someone like Argos taking the reigns and expanding on their photographic stock.
 
I wonder how much of Jessops sales are through it's online operation.
 
I just got back from the aforementioned Trafford Centre Jessops with a £1000+ lens that I ordered from them yesterday. It was also over £120 cheaper than I could find it anywhere else.

The staff were helpful and knowledgeable, and let me test the lens on my own camera body before handing over the ££.

Thanks Jessops.
 
A lovely thought but Nikon have managed to somehow get their logos onto Jessops' new uniforms..I tell you I nearly refused to wear one - I'm Canon all the way!!
 
A fellow Jessops employee?

I know! Nikon logo, rubbish.

If anyone asks it's because we are sponsored by Nikon which allows us to sell their products cheaper. A complete lie, since I have no idea how or why we have nikon on our tops :thinking:
 
no, no, I just frequent Jessops so often that they've officially adopted me..things were going great until they produced that nasty yellow logo'd rugby shirt so now I'm re-considering ;). . . ! I was chatting with my (pretty much but not) manager and they recon that we'll know more in March as regards the future of the company - it's a thoroughly resiliant company though so I'm not panicking that much. I will agree that it's not great with customers thinking that we're closing but I have had so many people asking for discount because of this, thinking that we need the trade, but insist on offering fiendishly low prices and getting a teensy bit righteous when we politely decline..talk about speeding up the downward spiral!
 
You must log in or register to reply here.
Back
Top