Thousands of jobs have been saved at Jessops in a deal that means the troubled photo retailer’s main operating company will be sold to a new firm, 47% of which will be owned by HSBC.
NEWS UPDATE 9.25am: JESSOPS SHARE PRICE HITS YEAR LOW
The agreement, which takes effect today, means that HSBC will ‘forgive £34m of debt’ owed by Jessops.
Jessops said the restructuring will protect ‘2,000 jobs directly, as well as others in the supply chain’.
Jessops executive chairman David Adams said: ‘After many months of hard work, we have been able to secure a long term future for Jessops Group Limited.
‘Thanks to the continued support of HSBC, the restructuring proposal will ensure that Jessops Group Limited remains a fundamentally strong business with a strong presence on the high street.’
He added: ‘It will also protect thousands of jobs and ensure that our customers continue to receive the specialist service they expect from us.’
Adams thanked Jessops’ suppliers and staff for their support over the past two years.
‘I firmly believe that this proposal is in the best interest of Jessops Group Limited, its creditors, employees and our millions of customers.’
The new company, Snap Equity Limited, will be 47% owned by HSBC, 33% by the Trustees of The Jessops Group Limited Pension and Life Assurance Scheme and 20% owned by an Employee Benefit Trust.