Jessops post another huge loss

[Dadooron]

From Yahoo Business News:

http://uk.biz.yahoo.com/090130/214/if4n4.html

Camera retailer Jessops posted another huge loss in the year to September last year.

Total revenue fell to £250.1m from £325.5m last year and there was a loss before non-recurring items and tax of £19.1m (2007: £9.3m). Losses after tax were £50.2m against £63.5m

In the period from July 2007 to October 2007 81 stores were closed. The increase in the loss before non-recurring items and taxation was principally caused by an increase in finance expense to £15.6m (2008: 7.1m) as the financing costs incurred for the re-financing in 2007 were fully expensed.
Jessops said in an update earlier this month that in the 5 week period ended 5 January 2009 like-for-like sales were up 3.1% and for the 14 week period ended 5 January 2009, like-for-like sales were down 5.6%.

 

[puddleduck]

Bugger - I really hope they pull through.

I know its all hip n trendy to knock them, but I'd hate to see them go.

 

[TG.]

As much as i dislike some of the cock up's they make i wouldn't like to see them go to the wall, even just for the fact you can go and try things out there,and buy if you can negotiate a good deal, it's just a shame so many of their shop's leave a lot to be desired in their staff training methods

 

[simonkit]

just a shame so many of their shop's leave a lot to be desired in their staff training methods

I wouldn't like to see them go, it's a useful shop and I do call in now & again but as you mention they have a BID problem with staff training/recruitment.

When the economy is running well poorly managed shops/retailers just about get by as people are still spending their cash and aren't necessarily to choosy, once the recession kicked in it's poorly run shops that will bear the brunt, Woolworths was a typical example and unfortunately Jessops is another, as is PCworld & Currys....

If companies can't be bothered to look at why they are struggling and do something about it then they don't really deserve anyones custom. There are lots of very small photography retailers still doing o.k as they provide the service and competitive prices.

As I say I hope they survive but they really need to address their problems if they've any chance of doing so

simon

 

[who?]

From todays Guardian:
Jessops warned yesterday that it was in danger of breaching its banking arrangements.

Chairman says refinancing within weeks, £57m of debt but business generating £4m

-------------------------

Im not sure where that £4m number comes from given the £50m loss, but I cant be bothered to read teh accounts.

 

[davem]

I can't see them lasting too much longer. According to some other articles, when they breach their banking arrangements, the banks could call in their loans. Apparently this is unlikely; their approach will probably be to refuse any more credit to the company. If they are reliant on that credit facility to keep their day-to-day operations going, then they're not going to have a choice but to start closing more stores down just to keep themselves solvent. All of the price increases driving custom away is not going to help matters either.

To be honest, I feel pretty much indifferent about it. Every time I've been to local stores, the stuff I've wanted has not been there or it is so vastly overpriced that I've preferred to just buy online. I feel for the employees (or at least the ones that don't treat you like crap), but at the end of the day if the business is untenable then that will be the end of it.

 

[BertRoot]

Walking past my local store today, St Annes, and it had a closing sign up in the window and a supposed relocation to one of the shops in Blackpool.

 

[arclight]

Not looking good for them.
The banks are ruthless now trying to build up capital.