The camera retailer Jessops collapsed into administration with debts of more than £80m, including £43m to suppliers, it can be revealed.
Jessops fell into administration last month, leading to 2,000 job losses and 192 store closures within days.
This sparked a tumultuous period for the high street, with HMV and Blockbuster following Jessops into administration. Republic, the fashion retailer, collapsed last week.
The statement of affairs from Jessops’ directors shows the company had debts of £81.4m. The report estimates that creditors will face a major shortfall from the administration, with just £3.4m likely to be raised from asset sales.
The list of trade creditors includes major camera makers such as Canon (Other OTC: CAJFF - news) , which was owed £16.4m, as well as Nikon (Other OTC: NINOF - news) and Sony (Xetra: 853687 - news) , which were both owed more than £3m.
However, the report also shows that suppliers were selling stock to Jessops with retention of title.
This means that although the stock was in Jessops stores, it was still owned by the suppliers until the retailer sold the product.
This explains why Jessops shops closed within days of the company calling in administrators — because suppliers could simply reclaim the stock they still owned. Of the £42.6m of debt to suppliers, £23.3m was stock held by retention of title and has therefore already been claimed by suppliers.
Despite the decline into administration, the Jessops brand is expected to live on after it was bought by the Dragons’ Den entrepreneur Peter Jones.
Mr Jones is planning to run Jessops as an online retailer but is also exploring a deal to buy a handful of its former stores.
Wm Morrison, the supermarket group, has already bought seven Jessops sites for use as convenience stores.
Meanwhile, Deloitte, the administrator to HMV, is in talks this weekend with pot-ential buyers to rescue the retailer.
The administrators are looking to conclude a deal within the next fortnight and are in talks with “a number” of parties. These include Hilco, the turnaround firm, which bought all the debt behind HMV.
However, it is not clear whether Hilco will press ahead with a deal to acquire HMV, with one source saying that the firm was being treated as the “secured creditor” by administrators rather than a potential buyer.
The administrators are also in talks to sell off HMV’s Asian business for up to £10m.
HMV has half a dozen shops in Singapore and Hong Kong that are not in administration, and Deloitte has received expressions of interest in these sites.