Canon is reportedly in the process of saving the UK electrical retailer in what is thought to be a £10 million deal.
Following another disappointing year in 2011, in the aftermath of a complete crisis two years previously, Jessops the camera store is once again turning to external businesses for financial help.
Three years ago, it was HSBC who salvaged their operations, when they wiped out £34 million of their debts in acquiring 50 percent of the business. Since then, a revamp of the 200 domestic stores as well as the development of their online operations has taken place, but it still seems that they are struggling, like so many of the country’s high street brands.
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It has been well documented in the aftermath of many company’s fourth quarter sales announcements that the role of multichannel retailing and online shopping is denting the efficiency and legacy of physical, walk-in stores, and the technology sector has suffered more than most. With avenues such as Amazon and EBay a popular stomping ground for purchases of cameras and other similar products, combined with a reluctance among consumers to pay the petrol money required to actually visit stores, shops like Jessops are front-line victims.
The latest saviours, it seems, are looking like being Japanese camera giants, Canon. The world renowned manufacturer is expected to pump £10 million back into Jessops in the hope that an affiliation with such a company could be the necessary resuscitation required.
Of course, the partnership would aid Canon too, explaining that through Jessops’ stores, consumers are able to test products before buying, enabling the Canon products to receive more publicity as a consequence.
The collaboration would also be vital to Canon in terms of their influence within the UK, with Jessops being the only camera-specific retailer in the country. A demise of Jessops would have a critical knock-on effect on Canon’s dominance in the western world, making the £10 million outlay more than worthwhile.
The latest attempt to revive Jessops stems from last year’s further descent into the economic abyss. A £12 million continued drop into debt came as a result of the £304 million achieved through sales.