// Jessops drafts in administrators for its property arm
// Talks about a sale of the business first took place in October
// Jessops’ main trading company Jessops Europe will not be affected by the administration
Dragons’ Den panellist Peter Jones has called in administrators for Jessops’ property arm, putting 500 jobs at potential risk.
Jones bought Jessops out of administration back in 2013, and the threat of a second administration for the camera retailer first came about in October 2019.
He is reportedly looking to cut costs by renegotiating rents and closing loss-making stores.
Administrators from advisory firm ReSolve were appointed to JR Prop earlier this week.
While Jessops’ main trading company Jessops Europe is not affected by the administration and Jones will continue the business as usual, it is not clear whether the administration process would safeguard the retailer’s 500 jobs.
The retailer’s parent company Jessops Group said it had recovered from a £765,000 loss in 2017 to make a profit of £722,000 as sales rose nearly 20 per cent to £120 million, in the year to the end of April 2018.
However, Jessops continued to be affected by the UK’s rising costs and low consumer confidence, as well as the shift to online.
Furthermore, the retailer is thought to have called in administrators after a failed bid to gain landlords’ approval for a CVA, which would have resulted in store closures and rent cuts.
Jessops is the latest retailer to call in administrators, as last month gifts and cards retailer Clintons drafted in administrators which put 2500 jobs at risk.
Clintons was ultimately bought out of administration in a pre-agreed deal with its owning Weiss family earlier this week – safeguarding all jobs.
Jessops currently has 46 stores.