Picture gets worse at Jessops as losses set to deepen

Struggling cameras chain Jessops offered more gloom today, admitting that sales have plunged again and that losses for the year will be even worse than last.

It is a year since Jessops unveiled a radical shake-up aimed at saving the business, axeing a third of its stores and pledging to boost its internet offering. There was no sign today that the plan has worked, raising serious questions about how long Jessops can stay in business.

Sales in the last three weeks are down another 11%. That comes on top of a fall of 8% in the eight weeks to 25 May as the carnage on the High Street takes its toll.

Chief executive Chris Langley quit last year to "pursue other interests" in what was taken by the stock market as a sign he felt he could not turn around the company. Executive chairman David Adams is now in charge.

He said: "The retail environment has worsened significantly over the last few weeks."

The loss for the year will be "worse than the equivalent loss of £7.5 million last year", a trading update said.

The shares have gone from 150p 18 months ago to just 7.95p today. That values the entire business at £8 million.

Jessops insists it is not about to breach banking covenants.

The company was founded in 1935 by Frank Jessop of Leicester. It was bought by private-equity house ABN Amro Capital for £116 million in 2002 and refloated on the stock market in 2004 at 155p a share.