Poleaxed by a price war in the market for digital cameras and preparing a new retailing life almost solely online, long-estabished photographic chain Jessops is reportedly in takeover talks with Merchant Equity Partners, the buyout group best known for saving furniture retailer MFI from oblivion.
Merchant has been looking at Jessops for more than a month, according to the Sunday Telegraph, with Reuters adding on Monday that while the buyout firm might be mulling a bid no firm offer was imminent.
In the meantime, Jessops is due to come out with a new strategic plan this week, which is likely to see the closure of about 80 of its 300 stores in Britain.
Jessops has issued three profit warnings since December as falling prices of digital cameras have obliterated its margins. The stock was floated at 155p in October 2004; on Monday the price added 3p to 19p, valuing the firm at just under £20m excluding debt.