Jessops, the 89-year-old camera retailer owned by Dragons’ Den star Peter Jones, is on the verge of closure after HMRC issued a winding-up petition for the company over non-payment of taxes.
The development marks a critical turning point for the struggling retailer, which has entered administration three times in the past four years. If Jessops fails to settle its tax debts, it risks bankruptcy again.
The latest financial disclosures reveal that Jessops’ sales fell by 7.5% to £19.97m for the year to 1 October 2023, compared with £21.58m the previous year. The fall contributed to a £1.2m loss, widening the company’s total net liabilities to £16.9m.
The winding-up petition could be overturned by HMRC, court filings show, if Jessops can pay its tax arrears.
Founded in 1935 in Leicester by Frank Jessop, the chain flourished under his son Alan Jessop as portrait photography gained popularity. It has changed hands several times, including a £116m takeover by ABN Amro in 2002 and a debt-for-equity deal by HSBC in 2009 during the financial crisis, which led to 80 of its 300 stores closing.
In 2013, Jessops went into administration and was subsequently acquired by PJ Investment Group, the investment vehicle owned by Peter Jones. Jones revitalised the brand by boosting online sales and reopening stores nationwide. However, the rise of smartphones with advanced cameras had a severe impact on sales of traditional street photography equipment. In response, Jessops turned to target a new generation of social media influencers on platforms such as TikTok and Instagram.
Despite these challenges, Jessops remains optimistic, stating: “The group’s strong heritage, trust and awareness of the Jessops brand and its reputation for quality continue to be the driving force behind our customer loyalty and our prestigious position in the imaging sector.”
Peter Jones, who was awarded a CBE in 2009 for services to business and charity, has invested millions of dollars in start-ups during his time on Dragons’ Den. His investments include Levi Roots’ Reggae Reggae Sauce, Bladez Toyz and Boot Buddy.
HMRC normally deals with businesses over unpaid tax, only resorting to court orders when negotiations fail. After being blocked from issuing winding-up petitions during the pandemic, HMRC is now under pressure to act, with tax debts totalling £45.9bn as of March last year. PwC analysis shows a 44% increase in winding-up petitions in April, reflecting increased demands from HMRC, local authorities and businesses.