High-street chain Jessops, owned by Dragons’ Den investor Peter Jones, has called in administrators.
Jones bought the chain from administrators in 2013 after it collapsed under £81m of debt.
Now, as the BBC reports, while revenues have increased most years since the takeover, profits fell to less than £10,000 last year.
The drone stockist is now planning to seek a rescue deal from its property arm, JR Prop Limited.
Known as a company voluntary agreement (CVA) with its landlords and lenders, it is an insolvency process that allows a business to reach an agreement with its creditors to pay off all or part of its debts.
The BBC went on to detail how it is often used as an opportunity to renegotiate rents.
Sky News said the CVA was expected to lead to store closures and rent cuts.
Despite this, sources close to Jessops, which employs around 500 people, said Mr Jones still saw a future in the business and would not say how many of the chain’s 46 stores were at risk of closure.
Jessops was recently announced as an official partner to Drone Safe Register Jessops after Peter Jones’ successful Dragons’ Den investment, in a move it said showed commitment to the drone industry and underlined its promise to ensure drone users are as well informed as possible on all aspects of owning a drone.
Speaking in March, Peter Jones explained how he was excited to see what the partnership had to offer.
He said: “I am absolutely delighted with my investment in the Drone Safe Register. Drones offer the chance to take the most breath-taking photographs and video footage, and for Jessops, where ‘image is everything’ there is a perfect synergy.”
Adding: “There are also a myriad of practical drone uses that can save businesses a lot of money – and these should be carried out by professional drone operators with a CAA approved licence. This register provides a quick and easy way to access a professional in your area.”
As it is the property arm of the business that is looking to call in administrators Jessops is still operating routinely.
This also means any Peter Jones ventures like Drone Safe register are not affected.