Icelandic group controls 11 per cent

Troubled photographic retailer Jessops has denied rumours that it has breached its banking covenants amid serious trading difficulties.
Executive chairman David Adams told Retail Week that there is “absolutely” no truth in the rumours, which led to a 35 per cent slump in shares.

He said: “Trading is not easy but we knew it would be tough for the rest of the summer.”

Analysts pointed out that Jessops secured a banking facility of£66.5 million from HSBC at the time of announcing its turnaround strategy in June, which should bolster funds to withstand poor summer trading.

In June, the retailer also announced plans to shut 81 stores and cut 550 jobs.

Adams added: “We are making good progress on the restructuring.” The company will update on its progress in its pre-close statement at the end of September.