Jessops is set to receive a £10m investment from camera manufacturer Canon to help prop it up.

Canon is set to step in amid concerns that its three year turnaround plan could stall, according to The Sunday Times.

The camera retailer was rescued three years ago by its main lender HSBC in a debt-for-equity swap. The bank took a 50% stake in Jessops, writing off £34m of its loans, in a move which saw it taken off the stock market.

Jessops has reduced its losses since the deal but made a £12m loss after tax against sales of £304.6m in the year to January 2, 2011.

Canon is understood to be willing to pump the cash into Jessops in order to protect market share as it believes the camera chain is vital to its UK sales. The manufacturer has been hit by new entrants to the market along with high quality smartphone cameras which have eroded demand.

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