Jessops- again...

I just read this:

UK photographic retailer Jessops has reported a loss of £19.1 Million for 2008. This follows a loss in 2007 of £9.3m. Like for like sales for the year ended 30 September 2008 were down 6.5% year on year. The compact camera market was up 7.3% in volume but down 5% in value and the DSLR market was up 16.1% in volume and 19.3% in value. David Adams, Executive Chairman, said: “It is not clear when economic conditions will improve but the combination of our strong market position, solid relationships with suppliers and continuing cost reductions should ensure that Jessops is in the best position operationally to deal with the very difficult economic conditions in which we are operating.”

Not waving but drowning, I think.

We will see if the little hole in there boat gets any bigger as time go's on, or if they just sink as quick as woolies.

Well there went my cup of tea all over the keyboard.
Cough ....

I am not sure what planet the EC is on but doubling your loss in one year and then expecting to turn things around in 2009 when the real problems are only just beginning

WHAT!!!!?

Is he on this planet?:

And when does the closing down sale start? I need a cheap ruck sack.

This morning's paper gives more details. Jessops made a huge loss this last year, not quite as big as last time but still huge.

By tonight they will have breached their banking covenants and they are in discussions with HSBC as to how they will restructure their loans.

The shares fell in value again and this values the company now at £2.1m -they owe £57.4m and the most recent loss is £49.8m (£19.1m pretax losses with one off charges being the rest)

I think I'm better at maths that their Executive Chairman.....

On those figures John the company looks almost certain to call in the receivers.

Unless HSBC want a camera retail chain!

You might be closer than you think, because HSBC have the option to exchange debt for up to 15% of the company.

It only takes One brave man at the bank to say NO MORE MONEY and Hardgravity will get his SALE.

I think it would be a brave man that said "We'll take 15% of your company".

Be funny if the CEO of HSBC was a Pentax User though, and insisted they stocked them again.

Dan

“Jessops drops Pentax cameras”
That is in the news column in this weeks Amateur Photographer.
The reason Jessops chairman David Adams says ,is “WE would love to work with them (Pentax).We felt, quite simply, that this time round the products were not the most compelling offer in terms of functionality and price” What a blind plonker the man is, he wants to open his eyes.
Another thing, he must think we Pentax owners-users are stupid, the only stupid person is him.
When Jessops go bust I will not cry for them, as they surely will.
With him at the head of Jessops no wonder they are in trouble.
So if any of you have shares in Jessops, my suggestion is sell them quick.
Any comments folks?

I've just fired off a letter to AP to express my opinion on David Adams' comments. (Just blogged it too).

Dan

If this should happen the ones to cry for will be the good staff members (and there are plenty) who will be out of a job and won't be able to pay the mortgage.

If for no other reason, I would want jessops to survive for their sake.

Quite. I'd like to see Jessops survive and become the sort of shop it used to be, with knowledgeable staff, good choice of equipment and secondhand stuff!

Dan

"If for no other reason, I would want Jessops to survive for their sake" Quote from John
If I had to work for a company like Jessops, I would have been looking at the jobs market long ago.
The company has been going down hill for ages and with a "top man" like David Adams the faster the better, he is also not quite telling the truth,I understand it was Pentax who would not supply him with kit at the prices he wanted and so Pentax "pulled the plug", and who can blame them.