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Jessops saved from insolvency by restructuring agreement

Published on 29 Sep 2009 under category: legal

A major UK retailer has avoided insolvency after agreeing a restructuring plan.

Jessops, which specialises in cameras and photography equipment, is set to come under control of its pension fund, an employee trust and HSBC.

This will see the bank take a 47 per cent stake in the firm, while the Jessops' pension fund will hold 33 per cent.

The final 20 per cent will belong to an employee benefit trust, insolvency solicitors may be interested to hear.

HSBC will take its stake in the firm in exchange for wiping the £34 million debt that it is owed.

It is thought that this move will save around 2,000 jobs at the company, as well as preventing it from going into insolvency.

Last week, research from Experience showed that the number of insolvencies in UK businesses dropped by 23 per cent in August when compared with the previous month.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.