Photography supplier Canon has expressed disappointment at the collapse into administration of Jessops, following claims that a credit squeeze by suppliers contributed to the photographic retailer‘s demise.
As administrators PricewaterhouseCoopers (PwC) search for a buyer for the retailer, reports have emerged that suppliers Canon and Nikon made changes to the terms of their credit agreements with Jessops and shortened the length of the payment period.
Canon has not responded directly to the claims, but emphasised the strength of its relationship with Jessops, and said: “Canon is disappointed to hear the news regarding Jessops, having had a strong business relationship with the company for many years and particularly following our efforts to support them during recent difficult trading conditions.”
Nikon, another supplier to the specialists, has so far declined to comment on the situation.
Jessops, which employs 2,000 people across 192 stores, fell into administration yesterday after its position deteriorated in the run up to Christmas.
Neil Saunders, Managing Director of Conlumino, commented that the camera market is in “terminal decline” as consumers use smartphones rather than compact cameras and professional photographers search for cheaper prices online.
Commenting that the retailer‘s customer base is “dwindling”, Saunders described the retailer‘s failure as “another example of a retailer falling victim to a decline in demand for its core product and a sharp shift in the way such product is distributed.”
“When faced with such a situation, a specialist single-product retailer like Jessops often has very little room for manoeuvre and reinvention,” he added.