Jessops' Debt

[Mike Farley]

I have just seen this report that Jessops had debts which were considerably mre than twice those estimated at the time of its collapse. Even the new figure of £115m might not represent the true amount, where people have been owed small amounts and not bothered claiming. As one example, shortly before the wheels came off I was given a £20 gift card but the likelihood of getting anything back was so remote that it is was not worth getting in touch with the receiver. Being an unsecured creditor, it turns out that I could expect to get back the magnificent sum of 4p. I suspect that others would have come to the same conclusion that the hassle of lodging a claim would not repay the effort involved.

Jessops went into administration when its bankers, HSBC, refused to extend its line of credit. Without HSBC's support, Jessops would have gone under much sooner and it surely must have been technically insolvent for a considerable period beforehand, with only the bank loan keeping it afloat.

http://www.amateurphotographer.co.uk/ph ... e-collapse