Sunday, April 26, 2009

Jessops

From the Financial Mail on Sunday at the link below is the following short on Jessops:

http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=483155&in_page_id=3

Jessops 'beating bank's targets'

Jessops executive chairman David Adams said last week he was 'confident' that he could secure the support of banks in his attempt to keep the camera retailer out of administration.

He said the company was beating costcutting and sales targets set by its main bank, HSBC

'It's all under way and its progressing well,' he said. 'It's not guaranteed, but I am confident.' Jessops has been the focus of persistent speculation after profits plummeted and it breached banking covenants.

HSBC is understood to be considering, among other options, writing off debt in return for an equity stake in the listed company.

It is expected to make a decision in the next two months.

Sources said it was reluctant to foreclose because it stood to lose £20m. But it might cut its losses.

Jessops has no assets as its suppliers own the stock and its stores are leasehold, so closing the business would yield little.

No comments: