The agreement with HSBC Bank will significantly reduce its interest rates. In addition, a£7 million financing fee that the retailer had been due to pay on December 31 has been reduced to£5 million and extended to 2011.
As part of the deal, Jessops has granted warrants over a further 5 per cent of its share capital to HSBC.
The retailer said that sales continued to fall, down 6.4 per cent in the 51 weeks to September 21, compared with a 5.6 per cent drop reported on July 15 for the year to date. However, margins are expected to improve by 0.8 points against last year.
EBITDA for the year to September 30 should be in line with guidance at over£4.4 million.
Jessops executive chairman David Adams said: “Our progress this year has been recognised by the continued support from HSBC and I am pleased to announce that our existing facilities have been extended. This is a significant step forward, as it removes any uncertainty over our funding for the foreseeable future.
“We remain confident that we have the plans in place to ensure continued progress.”
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