Jessops has filed a notice to appoint adminstrators for the 3rd time since 2013.
In 2013, Dragon, Peter Jones bought Jessops out of administration, saving almost 1,500 jobs and relaunching just two months after its collapse with a £4m investment. It then downsized to 46 stores but now has only 17. Jessops currently employs 120 staff.
Even before the Coronavirus the High Street has become a tough field the past few years where we have seen a number of high street chains collapsing due to the lack of customer spending and the switch to online shopping. Most firms in this position seem to call in administrators or be forced to restructure amid rising costs.
A spokesman for Jessops said: “We have filed a notice of intention to appoint administrators with a view to consider a CVA process in order to protect the business for our staff, our partners and creditors as we look to carve out a new strategy that will enable the business to continue to compete.
Strictly speaking, a notice of intention to appoint administrators should mean that you actually intend to appoint administrators rather than a ruse to stop someone issuing a winding up petition. Maybe they will go into administration and then exit via a CVA? This is an option and you can read more about it here
Of course, there are many options to help a struggling businesses such as informal time to pay deals, company voluntary arrangements, pre pack administration, administration followed by CVA.