Jessops is understood to have filed for administration after suppliers Nikon and Canon changed the credit terms and cut the payment period.

Since the collapse of the camera specialist retailer yesterday, revealed by, lenders, directors, suppliers and potential buyers have been holding intense discussions last night and again this morning to save the business, which operates 192 stores and employs 2,000 people.

It is understood administrator PwC wants to reach a deal quickly and is looking for a buyer for the whole of the business.

No announcement is expected today.

PwC said Jessops’ performance “deteriorated” in the run up to Christmas due to low consumer confidence.

A credit squeeze by the supplier base exacerbated the situation, said PwC.

A statement from Canon in response to Jessops’ collapse said: “We are disappointed to hear the news regarding Jessops after having a strong business relationship for many years and particularly following our efforts to support them during the recent difficult trading environment.”

Nikon did not wish to comment.

On Monday, Jessops revealed that 15 shops were set to close in the coming weeks. Following the collapse of the retailer PwC said more store closures are “inevitable”.

Jessops has been under pressure over the past two years following the increasing popularity of camera phones, hitting demand for digital cameras.

PwC joint administrator and partner Rob Hunt said: “Our most pressing task is to review the company’s financial position and hold discussions with its principal stakeholders to see if the business can be preserved. Trading in the stores is hoped to continue today but is critically dependent on these ongoing discussions.”