View Full Version : Jacobs Digital CLOSURE!!!!!

11th June 2012, 08:42 PM
Dear All,
Jacobs digital has gone bust, any orders placed before the 1st June are "non refundable" I have a BLN-1 battery on order, been told will have to claim on my credit card for refund !

11th June 2012, 10:34 PM
In this type of situation I think it is bad that customers who have placed and paid for orders do not get first bite of the cherry when it comes to payment of creditors. Effectively the money has been misappropriated but apparently it is legal. You can be sure the administrators will get their fee in full and the banks will pretty much carve up what is left, leaving Joe Public high and dry. My view is that money recieved by the company for spefic orders should not be regarded as part of the company's assets because it still belongs to the customer. :mad:

11th June 2012, 11:03 PM
The problem is that we make purchases without any 'conditions of purchase'

The ones who will get paid first are the ones who have contracts in place, such as conditions of sale (retention of title) and banks, all these organisations have clauses in the contracts to protect against this. the suppliers of the products (for example Olympus) will have retention of title clauses on the contracts, and they will visit the facility and mark up any items they have not been paid for. Still, most supplliers will lose huge sums of money (unless they have paid for credit insurance).

Usual thing, big companies can spend money on these things, but joe public isnt going to pay lawyers to write conditions of purchase, or insurance.

As Stephen says, CC can be a saviour (I don't know, but I suspect they have clauses written into their contracts with the shops who pay to accept credit card payments) so its worth having a credit card just for these crcumstances.

Hope you get your money back Stephen.

Nick Temple-Fry
11th June 2012, 11:17 PM
Must admit I'm surprised that a firm as big as Jacobs is/was took the money at order stage. Normal (or best) practise for larger companies is to obtain the authorisation to charge from the CC supplier at order time, but only make the charge at fullfillment.

Personally I always take it as a worrying sign if large companies don't do that, after all they are effectively making you 'loan' them the money - not something that is necessary if they have a healthy cash flow.

As it is every credit card user will effectively be paying for Jacobs failure in interest/card charges.

Whatever happened to business escrow accounts?


12th June 2012, 05:15 AM
Thanks Richard,
will contact my CC company today to see what the procedure is, I agree with you entirely about using credit cards for this type of transaction, thankfully it's only a 60 battery others may have much larger sums involved and not paid by credit card.

12th June 2012, 05:42 AM
Just a quick up date, Jacobs Digital are still trading !!! under the administrators with this small declaration at the bottom of the web page.

Edward T Kerr and Jim Stewart-Koster of PKF (UK) LLP were appointed Joint Administrators of the Company on 1 June 2012. The affairs, business and remaining property of the Company are being managed by them. Partners and staff of PKF (UK) LLP acting as administrators contract without personal liability. In the event that an order cannot be fulfilled a full refund of any monies paid will be made.

12th June 2012, 08:45 PM
Yes, trading under the administrator's control allows them to sell their stock and pay the suppliers for it. It's normal.

12th June 2012, 08:48 PM
they might even continue trading for some time, and they may even bring in new stock to keep going!

If the administrators think thats the best way to pay the creditors, then thats what they will do. The administrators are effectively engaged to protect the creditors. They might even try to sell the business as a going concern.

None of the above is guaranteed to help those who paid for items and didnt receive them.

12th June 2012, 09:07 PM
A report on the Amateur Photographer website last Friday said the administrators have shut 7 shops but 12 are still trading. They are preparing to open negotiations with a number of organisations who have expressed an interest in purchasing the remaining stores.


12th June 2012, 09:41 PM
Makes me a bit wary, as I only use debit cards, not credit cards...... maybe I should get one again, although most of my gear is either bought through PayPal or from Amazon, so the risk is pretty negligible I suppose....

Ulfric M Douglas
13th June 2012, 08:26 AM
Derek it is worth getting a credit card and then using it by paying it off in full every month.
I got one initially when Asda was offering 2p off every litre of Asda petrol forever ... that didn't last long, but I've still got the card and use it for Paypal, Petrol and plane tickets.
Suffice to say I don't build up a credit card debt, that's for the sheeple.

13th June 2012, 10:08 PM
where do we stand now with free case and battery from the focus on imaging offer....sorry....don't mean to be unsympathetic with those having placed real orders with Jacobs.

Frank N Furter
21st June 2012, 07:08 PM
I had some accessories on back order which I'd bought from the Jacobs website using PayPal. In order to get a refund I just had to put a claim in with PayPal, the refund came though in less than an hour! :) The paypal process did not even refer the claim to Jacobs for confirmation, it appears PayPal are fully aware of the situation. btw, you only have 45 days from order to make a PayPal claim.

21st June 2012, 07:10 PM
Good to know!


25th June 2012, 04:43 PM
The administrators have now announced that all Jacobs branches have closed, with the Leicester branch remaining open until it has cleared their stocks. The attempt to sell the chain as a going concern has failed unfortunately.


25th June 2012, 07:18 PM
Does anyone know how we proceed regarding the free focus on imaging offer?...just like many others I'm outstanding the case, hand grip and most importantly the spare battery.

Frank N Furter
25th June 2012, 07:23 PM
Brian, Ian had an update a few days ago... see this thread...


Simon Bee
25th June 2012, 09:41 PM
Effectively the money has been misappropriated but apparently it is legal. You can be sure the administrators will get their fee in full and the banks will pretty much carve up what is left

Yes the administrators will get their fee as they are acting "in the interest of the creditors" which will almost certainly include HMRC who ALWAYS come top of the list, if any monies are owing to HMRC ( VAT, PAYE, Corporation Tax etc ) they will be first to get paid and not the banks, only then will other creditors receive any monies they are due.

It sucks I know but that is the way it is I'm afraid, as buyers our contract is with the retailer, if the retailer goes bust it is not their suppliers or the governments fault. If a customer has handed over any money for goods not yet received they also become a "creditor" but as the value of money owed to the customer will almost always be very small in comparison to the amounts owed to other creditors the customer will be at the bottom of the pile when it comes to getting anything back. The administrator will aim to raise as much cash as possible so that the creditors can be paid and in the following order :-

1) Administrators
3) Banks
4) Local Authority Business rates
5) Suppliers ( also includes utilities, telecoms, leasing companies etc , etc )
6) Then if there is anything left ( which is rare ) , any monies owing to customers

If I "backorder" ( place an order for something which is not in stock with the retailer ) an item I ALWAYS use a credit card and ONLY pay a deposit, usually around 10% of the value of the goods on order. This deposit gives the retailer confidence that I do indeed actually want the item ( as opposed to asking them to get the item in and I'll pay for it when they call me, only for me not to bother to come back and the retailer is left with the goods ) and if the retailer goes to the wall at least I will have only parted with 10% and not 100% of the money, that said having used a credit card I would be covered anyway asumming the value of the "payment" made ( not the value of the order ) is more than 100.00

It is a great shame that a family owned independent such as Jacobs has fallen victim to these difficult times, but I as an independent retailer myself ( family owned hardware store since 1872 ) am a firm believer in " Small is Beautiful ! " for the bigger you become the harder you fall ( just try to imagine the size of their overheads :eek: ) . It's one of the reasons as well as service that I mostly use "one store family firms" such as Ffordes or Mifsuds, in most cases such firms are better able to weather the storm.

Still a shame about Jacobs, but an even bigger one for the customers who may well lose out and I completely sympathise with them.

Best wishes Simon

25th June 2012, 09:47 PM
There is one additional consideration.

I know it is no consolation for the buyers who are/might be out of pocket.

But if the companies that are owed large sums of money lose everything then a domino affect can quickly follow. If Jacobs default on their suppliers then their suppliers might be at risk of following them, and so it continues. (Bit like the Euro crisis is heading)

In most cases the man in the street will not go bankrupt if he loses out on the money he has tied up in Jacobs.

I am sure that doesnt make those out of pocket feel any better.