Struggling British camera chain Jessops, owned by entrepreneur Peter Jones, has been hit with a winding-up petition from the UK’s HM Revenue & Customs (HMRC) for unpaid taxes, the Telegraph reported.
This adds to the company’s ongoing financial woes, marked by declining sales and repeated administrations.
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Jessops’ troubles stem from a confluence of factors.
Specifically, the rise of smartphones with high-quality cameras has significantly eroded demand for stand-alone cameras, a core product for Jessops.
Additionally, the company’s attempt to pivot towards online sales and attract younger customers has not yielded significant results.
Accounts filed recently show a 7.5% year-on-year sales decline to £19.97m ($25.47m), resulting in a pretax loss of £1.2m.
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By GlobalDataThis is not the first time Jessops has grappled with administration.
The company has entered administration three times since 2019, leading to store closures and workforce reductions.
In March 2021, Jessops filed a notice of intent to appoint administrators after being severely hit by the country’s lockdown restrictions.
The company then appointed advisory business FRP to restructure its business. This was the second time in almost a year that Jessops had filed such a notice.
In 2013, Peter Jones’ investment group acquired Jessops after a previous administration, attempting to revive the brand.
While efforts were made to streamline operations and target content creators, they haven’t stemmed the financial bleeding.
HMRC’s winding-up petition signifies the severity of Jessops’ tax arrears.
The petition can be withdrawn if the company settles its obligations, but it casts a long shadow on the retailer’s future.
Despite these challenges, Jessops remains optimistic.
The company claims its ‘strong heritage’ and brand awareness will continue to attract customers.
However, the future of Jessops hinges on its ability to address both immediate tax issues and adapt to the evolving retail landscape.
