Jessops stores all closed down

15 January 2013

All the Jessops stores have been shut down, as of the weekend, resulting in 1,400 job losses.  This has come very quickly after the business went into administration.  Administrators have set up a Jessops Group Limited helpline which can be reached on  0113 289 4422.   .Why so quick when compared with Comet that held a closing down sale?  There could be a number of reasons. Firstly, the administrators obligation is to make sure that the position of creditors is not made worse during the administration.  So if the prospect of selling everything very quickly was unlikely to bring in more money than would be spent on costs then it would be best to shut down immediately.  However, the most likely reason is that virtually all the equipment, being of high value and branded, was held in the store under "retention of title" or ROT.  I.e the £1000 camera was in effect owned by Canon until it was sold.  This would mean that all the stock would have been taken back by Canon, Nikon, etc the moment the administrators were called in.  This ROT clause is to ensure there is no aggressive discounting of their products while a business is trading and ensure that if the goods were not sold then they could take them back.Nikon has moved to reassure customers that it is ‘actively working with administrators and plans to undertake all outstanding repairs as quickly as possible'.In a statement, the firm added: ‘Nikon UK can confirm that we will also be honouring any repairs under Jessops' Photo + extended warranty scheme.' For details call 0330 123 0928