Thursday, May 28, 2009

Jessops Debts are mounting

Shareholders in Jessops may end up with nothing - Jessops' sales are down and shareholders are unlikely to see any return.
Shareholders with Jessops were told today that they are “unlikely to realise any value from their equity” as talks with Jessops' lenders continue.

“In January we said that we were in discussions with our advisers and HSBC Bank and that it was highly likely that this exercise would involve a fundamental restructuring of our debt. These discussions continue,” said Jessops' Executive Chairman, David Adams in a statement today.
He continued, “Regrettably however, against the backdrop of the challenging retail environment and the historic level of debt, the board believes that it is unlikely that any value will be attributed to shareholders. Nevertheless we are still working with HSBC towards a solvent solution for the business.”

The camera retailer also reported that in the six months to 31st March, like for like sales fell by 4.5% and their loss before non-recurring items and tax has grown to £5.9 million.

David Adams said: “Since my arrival at Jessops in 2007, the team has worked very hard in extremely challenging conditions to secure a successful future for the business. We have reduced costs wherever possible, worked closely with suppliers and explored a range of options to deliver a sustainable future for Jessops.”

Jessops' restructuring programme is still ongoing.

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Jessops' debts are mounting

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