Financial problems (2007–2013)
The company suffered financial difficulties by June 2007, requiring the strategic review, and eventually leading to a re financing with its bankers, HSBC, in September 2009. This led to the group's trade being transferred to a new holding company, Snap Equity Limited, whilst Jessops plc was placed in liquidation and the group's final salary pension scheme transferred to the Pension Protection Fund.
Snap Equity was formed as a private company, 48% owned by HSBC, 33% by pension trustees, and 20% by an employee trust. On 21 June 2007, Jessops announced the closure of 81 of its then 315 stores, as "part of a strategic review, which aimed to save the Leicester firm £15m".[14] HSBC acquired the company circa September 2009, in a "debt for equity" deal.[15] The Financial Times commented that the company was hurt by the increasing quality of mobile phone cameras, reducing demand for traditional cameras.[16]
On 9 January 2013, Jessops went into administration, with an application made to the High Court.[17][18] On 11 January, it was announced that all 187 stores would close, with the loss of 1,370 jobs. Shoppers who put up to £500 on a gift card, found them useless,[19] and the company ceased to accept customer returns, although manufacturers' warranties on products not branded by Jessops, were not affected.
On 31 January 2013, however, the brand of Jessops, and various assets, were acquired by PJ Investment Group owned by entrepreneur, Peter Jones, one of the investors from the television programme, Dragons' Den.[20] Various new companies were incorporated including Jessops (Group) Limited, Jessops Europe Limited and Jessops Retail Limited.[21][22][3] Jones also incorporated Jessops Online Limited, at the same time.[23]
On 3 February, the supermarket retailer, Morrisons, agreed to purchase seven of Jessops larger store sites, from the administrators, for an undisclosed price, to be converted to the convenience store format by Morrisons, M Local.[24]
