High street camera chain Jessops has fallen into administration and as a result nearly 2,000 jobs could be at risk.
PricewaterhouseCoopers has been appointed as the administrator, as the high street chain has struggled to keep up with online competition from retailers.
Jessops, established in 1935, has been a popular electronics retailer for many years and specialises in cameras, digital cameras and video camera equipment. The firm saw sales drop during 2012 because of the rising competition from online retailers. The decline in sales is thought to continue during 2013 which has forced the company into administration.
At present there are 192 stores across the country and nearly 2,000 staff members working for the organisation. It’s thought the administration will bring with it some store closures although that is yet to be confirmed.
The news on Jessops follows other big brand retailers struggling for sales. Electrical retailer Comet went into administration last year and saw all of its stores close during Christmas. Game and Clinton Cards were also announced as going into administration last year.
The future of Jessops is yet unknown however the administrators are currently looking into the company’s financial situation and talking to stakeholders.
As well as competition from online retailers it’s been suggested that the development of technology like camera phones has jeopardised sales of equipment in Jessops. More and more consumers are using Smartphones and digital software to take, upload and develop their pictures.
Jessops narrowly escaped administration back in 2009 – it avoided it by closing a deal with HSBC.