Five questions answered on the collapse of Jessops

Thousands of jobs at risk.

Another high street store admits defeat and announces it is to go into administration putting thousands of jobs at risk. We answer five questions on Jessops’ decision to close.

What reason has Jessops given for its planned closure?

The high street camera store says it is being forced into closure after leading camera makers, such as Canon and Nikon, have tightened the terms on which they sell products to the company following a downturn in the market.

Unless Jessops can whip up a deal with suppliers the company said closure by the end of the week would be inevitable.

Companies that supply Jessop are said to be concerned about the state of the electrical sector after the collapse of Comet last year, plus Jessops failed to increase its 2012 sales from the previous year.

How many jobs will be sacrificed in Jessops closure? 

In its 192 stores Jessops employs about 2,000 staff who will all lose their jobs if stores close.

However, those who are members of the Jessops’ pension scheme are said to be protected because it was adopted by the Government’s Pension Protection Fund (PPF) in 2009.

Who else will be a loser?

HSBC who co-own the company because the bank stands to lose £30 that Jessops owes HSBC. In total Jessops is estimated to have debts of £60m, including £30m of trade debt and the HSBC debt.

HSBC tried to strike a deal with suppliers to ease Jessops’ financial burden but to no avail.

What has Jessops’ spokespeople said about the company’s closure?

Rob Hunt, joint administrator and partner at PricewaterhouseCoopers who have been appointed as administrator of Jessops, told the BBC: "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."

It’s not a good start to 2013, who could be next?

It’s hard to say, but online entertainment retailer Play.com succumbed on Wednesday; the second biggest casualty of 2013. The retailer will make more than 200 redundancies.

Although there is no suggestion of closure, Marks and Spencers reported a 1.8 per cent drop in like for like trading figures in the 13 weeks to 29 December on the same period a year earlier.

Last year casualties included Comet, Clinton Cards, JJB Sports and Game Group.

Another high street store admits defeat. Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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Voters are turning against Brexit but the Lib Dems aren't benefiting

Labour's pro-Brexit stance is not preventing it from winning the support of Remainers. Will that change?

More than a year after the UK voted for Brexit, there has been little sign of buyer's remorse. The public, including around a third of Remainers, are largely of the view that the government should "get on with it".

But as real wages are squeezed (owing to the Brexit-linked inflationary spike) there are tentative signs that the mood is changing. In the event of a second referendum, an Opinium/Observer poll found, 47 per cent would vote Remain, compared to 44 per cent for Leave. Support for a repeat vote is also increasing. Forty one per cent of the public now favour a second referendum (with 48 per cent opposed), compared to 33 per cent last December. 

The Liberal Democrats have made halting Brexit their raison d'être. But as public opinion turns, there is no sign they are benefiting. Since the election, Vince Cable's party has yet to exceed single figures in the polls, scoring a lowly 6 per cent in the Opinium survey (down from 7.4 per cent at the election). 

What accounts for this disparity? After their near-extinction in 2015, the Lib Dems remain either toxic or irrelevant to many voters. Labour, by contrast, despite its pro-Brexit stance, has hoovered up Remainers (55 per cent back Jeremy Corbyn's party). 

In some cases, this reflects voters' other priorities. Remainers are prepared to support Labour on account of the party's stances on austerity, housing and education. Corbyn, meanwhile, is a eurosceptic whose internationalism and pro-migration reputation endear him to EU supporters. Other Remainers rewarded Labour MPs who voted against Article 50, rebelling against the leadership's stance. 

But the trend also partly reflects ignorance. By saying little on the subject of Brexit, Corbyn and Labour allowed Remainers to assume the best. Though there is little evidence that voters will abandon Corbyn over his EU stance, the potential exists.

For this reason, the proposal of a new party will continue to recur. By challenging Labour over Brexit, without the toxicity of Lib Dems, it would sharpen the choice before voters. Though it would not win an election, a new party could force Corbyn to soften his stance on Brexit or to offer a second referendum (mirroring Ukip's effect on the Conservatives).

The greatest problem for the project is that it lacks support where it counts: among MPs. For reasons of tribalism and strategy, there is no emergent "Gang of Four" ready to helm a new party. In the absence of a new convulsion, the UK may turn against Brexit without the anti-Brexiteers benefiting. 

George Eaton is political editor of the New Statesman.