Jessops focuses on return to profit after debt-for-equity rescue deal

Executive chairman David Adams insisted there would be no radical changes made as a result of banker HSBC now owning a majority stake in the retailer.

“On our earnings projection we can service our debt and deliver a good return,” said Adams. “This is not the start of a restructuring process. The business the bank has signed off is the business we have now.”

The deal, preserving the business and 2,000 jobs, involved Jessops selling its assets to a new company, Snap Equity, which is 47% owned by HSBC and 33% owned by pension trustees. The remaining 20% is held by an employee trust.

Adams will remain on the board as executive chairman alongside chief executive Trevor Moore, finance director William Rollason and a non-executive director.

The 211-store retailer will delist from the London Stock Exchange following the deal, which resulted in HSBC writing off £34m of debt. The retailer now carries about £20m of debt.

Adams said: “If the bank hadn’t supported us we wouldn’t have survived. Jessops has a position in the market and a viable business model. We can send a message to suppliers that Jessops is here to stay.”

Shareholders in the old business will share just £100,000 between them, which Adams said was “very regrettable”.

He emphasised that administration had been avoided.

“I was keen to get a solvent solution,” he said.

Adams conceded that public ill-feeling towards banks may have influenced HSBC’s decision to support the retailer.

“Banks would not want to be seen to be putting 2,000 people out of work,” he said.

Adams will remain “substantially involved” but admitted being “not sure” how long he will stay in the position and that he would consider another challenge after Jessops.

There are no plans to shut stores.