According to reports, camera retailer Jessops has been served with a winding-up petition by HMRC, raising fears that it will once again file for insolvency.
Commenting on the news, John Cullen, Business Recovery Partner at Menzies LLP said: “Jessops is a fabulous business with a heritage that has attracted some big names in retail.
However, just because a petition has been issued, it does not mean it is the end of the line. A sophisticated business would normally have advisers in place that could head off or choose an alternative path for the business so this may not be a sign of the company being unable to pay its debts. If the company settles the petition or successfully disputes the debt, this matter will be consigned to the history books as some unfortunate bad publicity.
There are more winding up petitions around but there are also more companies, so that in itself is not unusual. However, there remains a post-pandemic legacy of debt that was pushed into the future. That is impactful. In addition, our ultimate customers, the public, are living in a higher-interest environment, and that is beginning to catch more and more homeowners with mortgages as their mortgage deals come to an end. That puts the brakes on an economy as our spending slows and this impacts businesses. If those businesses have legacy debts, it just makes everything that much harder.”
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