Depressed consumer sales have hit yet another High Street retailer as specialist camera retailer Jessops has gone into administration, putting 2,000 jobs at risk.
Administrator PwC said it was inevitable that jobs would be lost and shops closed.
Edward Williams, Rob Hunt and Matthew Hammond of PwC were appointed jointadministrators of The Jessop Group Limited on 9 January 2013.
Jessops ' turnover in the year to 31 December 2012 was £236m and the chain operated 192 stores with around 2,000 employees across the UK.
Despite a strong brand, its core marketplace has seen a significant decline in 2012 and forecasts for 2013 indicated that this decline would continue. In addition, the position deteriorated in the run-up to Christmas as a result of reducing confidence in UK retail. Difficult trading meant that Jessops did not generate the profits it had planned with a consequent impact on its funding needs. This was exacerbated by a credit squeeze in the supplier base.
Rob Hunt, joint administrator and partner, PwC said: 'Over the last few days the directors, funders and key suppliers have been in discussions as regards additional consensual financial support for the business. However, these discussions have not been successful.
'Our most pressing task is to review the company's financial position and hold discussions with its principal stakeholders to see if the business can be preserved. Trading in the stores is hoped to continue today but is critically dependent on these ongoing discussions. However, in the current economic climate it is inevitable that there will be store closures.'
The administration means that Jessops is not in a position to accept customer vouchers or to accept returned goods.
Julie Palmer, a partner at Begbies Traynor, said: 'Jessop's expected administration is yet another blow for the UK's high street retailers.
'Our recent research highlighted over 13,700 retailers experiencing significant distress in the 11 weeks to 17 December 2012, a 35% increase from the third quarter, whilst approximately 140 UK retailers are on our "critical" watchlist.
'January is a high risk month for retailers' she added. 'With substantial cash outflows on the 25 December quarterly rent day combining with fierce pricing competition during the January sales, it puts significant pressure on finances.'