Jessops warns of further losses as downward spiral continues

PHOTOGRAPHIC retailer Jessops yesterday reported gloomy trading figures, with sales down 4.7 per cent in the 12 weeks to 16 August.<br /><br />The group said it still expects to post a loss for this financial year because of the difficult retail environment.<br /><br />The recent fall in sales comes after a 3.6 per cent drop in the eight weeks to May 24 and a 4.5 per cent decline in the six months to the end of March, Jessops said.<br /><br />The embattled group added it was in survival talks with its main creditor, HSBC, and was delaying its year end by two weeks as it battles against the clock to finalise a restructuring deal to save the business.<br /><br />Jessops has warned investors that any solution is likely to wipe out the equity value of the chain.