Jessops gone into administration...

[Grenoble]

http://www.bbc.co.uk/news/business-20958659

"Troubled High Street camera retailer Jessops has gone into administration, with PricewaterhouseCoopers appointed as the administrator. In 2009, Jessops managed to avoid administration by agreeing a debt for equity swap with its lender HSBC. In recent years, it has been hit by increasing competition from supermarkets and internet retailers.Last year, chief executive Trevor Moore left Jessops, founded in Leicester in 1935, to become HMV boss."

[Grenoble]

MadMullah said:

One of the problems with jessops was that they wanted to stay on the old beliefs the company had - with relying on developing film and selling equipment

but regardless of it all - the digital camera did kill it off.

A good point - digital killed off annuity revenue - film and developing - which also got the customer into the shop. Fewer shots taken, higher spend per year on films, developing, albums and reprints?

[Grenoble]

I think jewellers are like clothing stores - still very personal - so many will survive. Big brands can also control some of the outlet - as brands like Chanel do. Some Chanel products are not even sold on Chanels own web site - they want you to go in store...

[Grenoble]

Sir Bagalot said:

I've said it before and I'll say it again. The internet is here to stay and unfortunately local councils haven't woken up to this fact. Car parking charges are too much and business rates are crippling stores.

Your forgot landlords with unrealistic expectations who are terrified of correctly valuing their portfolio.

[Grenoble]

JL are awesome. Not always the cheapest, but excellent value and good service.

[Grenoble]

Mermaid said:

The day JL announce losses will be the end of retail as we know it.

Indeed. Along with the day DFS don't have a sale on, and when WHSmiths don't offer a chocolate bar when buying a newspaper.

[Grenoble]

Podie said:

Ever tried to get them to fulfil their "price promise"...?

Despite about 20 attempts, on everything from toys to electricals to homeware, I've handed in receipts, printed web pages, reservations details, shown web pages on an iPhone and they have NEVER price matched...

Yes, several times.

[Grenoble]

I imagine London has all manner of "offers" so have to follow their rules to the letter, which are:

If you see or buy a product online and find it cheaper with a high street competitor (whether or not they also sell online), as long as their service conditions are comparable, then we’ll match that price for you or refund the difference. Comparable service conditions include factors such as delivery charges and timescales, and fitting or installation services (including accreditation of fitters, scope of workmanship, materials used and timescales).

Please note though, that we won’t refund the difference in price paid if you could have bought the product more cheaply with an online-only retailer: examples of these include Dixons.co.uk, Amazon and Play.com ,who sell only through their websites or mail order and not via high street shops. We also don’t match competitors who are in administration or closing down.

I have also managed to get a "compromise price" - or cables thrown in to close the gap. I'd rather buy from them anyway so it's more about a price I am happy with than the lowest possible. I don't mind paying a mild premium for customer service, if you buy cheap, you buy twice...

[Grenoble]

To add : no quarter on quarter expectations from overpaid analysts to meet share price expectations....

[Grenoble]

Hub said:

They are a known brand so I expect that they could do alright as an online retailer of camera gear and photobooks, canvases etc rather than disappearing completely.

I agree. I think there is value in the brand for someone like Tesco to pick up and utilise - despite the recent store issues it was quite a "high trust" brand. Online sales + maybe some sub store branding. Won't take them out of administration, though.

[Grenoble]

singlecoil said:

I expect there will be enough money left to pay the administrators' fees though.

Do you want them to do it for free?

[Grenoble]

singlecoil said:

False dilemma. You are asking me to choose between them charging the kind of money that they do now, and them doing it for free.

Oh I agree, but you didn't offer an alternative. I can't see an easy alternative. People are motivated by payment, perhaps a base payment + long term incentive on a future business model (% of shares?) might be better?

[Grenoble]

Crafty_ said:

HMV will go down the pan, I'm sure.

You might do well to try and sell them for 80p per pound, I think you are right about them going under...