Jessops has not run out of money and has sufficient cash to run the business, insists chairman David Adams (pictured). However, the photographic retailer will not rule out further store closures and job cuts to sustain the business in future.
The Jessops boss maintains that the 230-store chain does not have a long line of unprofitable stores, contrary – he tells us – to a widely-held belief among financial observers.
Adams was speaking to Amateur Photographer (AP) magazine after numerous press reports focused on the likelihood that it will need to ?restructure? its debt with its bank, HSBC.
Jessops net debt currently stands at £57.4m. Financial results released earlier today stated that the chain expects to ‘fundamentally restructure’ its debt to put it on a ‘more stable footing’.
Jessops said it is ?highly likely? that its long-term debt will need to be re-classified as ?short term? in the months ahead.
Speaking this morning, Adams told AP: ?If the banks were sufficiently concerned we would not have got through Christmas? We enjoy the support of the bank and we are working with them. The bank believes there is a viable business model and we just need to work out the best way to restructure it from a balance sheet point of view.?
Asked whether there will be further store closures and job cuts Adams told us: ?As part of the review that we did with the bank, we will continue to look at staffing levels and store portfolio.?
He said that Jessops is a ?sustainable and viable business? and, as with any other business, it would conduct such a review, if necessary, to maintain this position.