Jessops, the camera chain owned by Dragons’ Den star Peter Jones, is to be closed due to unpaid taxes

Jessops, the iconic 89-year-old camera shop owned by Dragons’ Den star Peter Jones, is on the brink of closure after HM Revenue & Customs (HMRC) filed a liquidation petition over unpaid taxes.

The development marks a critical moment for the troubled retailer, which has gone into administration three times in the past four years. If Jessops fails to pay off its tax debt, the company risks insolvency again.

Recent financial disclosures show that Jessops’ turnover fell 7.5% to £19.97 million for the year ending October 1, 2023, compared to £21.58 million the year before. This decline contributed to a loss of £1.2 million, taking the company’s total net liability to £16.9 million.

HMRC’s winding-up petition, as evidenced by the court filings, could be withdrawn if Jessops manages to clear its tax arrears.

Founded in 1935 in Leicester by Frank Jessop, the chain flourished under the leadership of his son Alan Jessop as personal photography gained popularity. It changed hands several times, including a £116 million takeover by ABN Amro in 2002 and a debt-for-equity deal by HSBC in 2009 during the financial crisis, which led to the closure of 80 of its 300 stores.

In 2013, Jessops went into administration and was subsequently acquired by PJ Investment Group, the investment vehicle of Peter Jones. Jones has revitalized the brand by boosting online sales and reopening stores across the country. However, the rise of smartphones with advanced cameras has had a serious impact on sales of traditional photography equipment on the high street. In response, Jessops has targeted a new generation of social media influencers on platforms like TikTok and Instagram.

Despite these challenges, Jessops remains optimistic, stating: “The group’s strong heritage, trust and familiarity with the Jessops brand and reputation for quality continues to be the driving force behind our customer loyalty and highly regarded position in the imaging sector.”

Peter Jones, who was awarded a CBE in 2009 for services to business, enterprise and charities, has invested millions in start-ups during his tenure at Dragons’ Den. His investments include Levi Roots’ Reggae Reggae Sauce, Bladez Toyz and Boot Buddy.

HMRC typically engages with companies over unpaid taxes and only resorts to court orders if negotiations fail. After being deterred from making winding-up applications during the pandemic, HMRC is now under pressure to take action, with total tax liabilities reaching £45.9 billion since March last year. PwC’s analysis shows that bankruptcy filings increased by 44% in April, due to increased demands from HMRC, local authorities and businesses.