Following an extensive period of negotiations with HSBC, Jessops plc has agreed a solvent restructuring of Jessops Group Limited, its principal trading company, which will “place that business on a sound financial footing for the future”. The restructuring proposal, achieved with the support of HSBC, will enable Jessops to continue with business as usual. Importantly, the restructuring will protect 2,000 jobs directly, as well as others in the supply chain, the company says. Under the restructuring, Jessops main operating company is being sold to a newly formed company, Snap Equity Limited, which will be 47 per cent owned by HSBC. In exchange, HSBC will forgive £34m of debt owed by Jessops plc.

Jessops Press Release

JESSOPS LONG-TERM FUTURE SECURE

HSBC backed restructuring protects jobs

Jessops plc (“Jessops”), the UK’s leading retailer of photographic products and services, announces that following an extensive period of negotiations with HSBC, it has agreed a solvent restructuring of Jessops Group Limited (“JGL”), its principal trading company, which will place that business on a sound financial footing for the future.

The restructuring proposal, achieved with the support of HSBC, will enable JGL to continue with business as usual. Importantly, the restructuring will protect 2,000 jobs directly, as well as others in the supply chain.

Under the restructuring, Jessops main operating company is being sold to a newly formed company, Snap Equity Limited, which will be 47 per cent owned by HSBC, 33 per cent owned by the Trustees of
The Jessop Group Limited Pension and Life Assurance Scheme (1993) and 20 per cent owned by an Employee Benefit Trust. As part of the transaction, HSBC will forgive £34m of debt owed by Jessops plc. The proposal, which is expected to take effect from tomorrow, also allows for the sum of £100,000 to be made available for distribution to shareholders.

The restructuring proposal has received approval from the UK Listing Authority and does not require shareholder approval.

David Adams, Jessops executive chairman, 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. It will also protect thousands of jobs and ensure that our customers continue to receive the specialist service they expect from us.

“I would like to thank our 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.”

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