Jessops to close 81 shops Announces losses of over £25 million

21 June 2007 8:25 GMT / By Amy-Mae Elliott

Photography chain Jessops has announced plans to close 81 shops and cut 550 jobs.

Jessops has been struggling in recent years as consumers increasingly move away from traditional film photography and into digital photography.

Although Jessops has brought thier product lines up to date and offer a digital products and services, the chain has faced increasingly strong competition from cheaper online retailers of digital cameras.

Jessop's traditional film processing side of the business has seen massive decline, leading to several profit warnings being issued.

The company announced pre-tax losses of over £25 million for the six months to 1 April.

Jessops' executive chairman David Adams, said: "The strategy allows us to re-position Jessops as a true multi-channel retailer, building on our core strengths in the digital imaging market place. The board is confident that Jessops will deliver a significant turnaround in its financial performance".

47 of the stores due to be closed overlap with nearby branches, the closures will leave Jessops with 234 stores.