Camera shops safe after restructure.

Byline: JEZ DAVISON

THE UK's biggest camera retailer today said it has no plans to close its two Teesside stores following a restructuring exercise that will see the firm almost half-owned by its bank.

Leicester-based Jessops, which has more than 200 stores, is selling its assets to a new company 47% owned by HSBC and 33% owned by pension trustees, with the remaining 20% held by an employee trust.

Following the deal, Jessops - which reported losses of pounds 6.3m in the six months to March - confirmed there would be no redundancies at its Middlesbrough and Darlington stores, which together employ around 15-20 staff.

A company spokesperson said: "People at one point thought we were going to be another Woolworth's [but now] it's very much business as usual." The news comes as retail bellweather Marks and Spencer posted better-than-expected performance in the 13 weeks to September 26, with like-for-like sales falling by 0.5%, although optimism on the high street was dampened by today's news that outdoor clothing firm Blacks Leisure plans to close 89 of its loss-making stores. The company owns 256 Millets shops, including three on Teesside, and 116 Blacks Outdoor outlets.

Meanwhile the CBI's latest survey, out yesterday, said conditions in the retail sector were starting to stabilise, with sales broadly flat in the year to September after four successive months of decline.

Thirty-nine per cent of respondents said year-on-year sales volumes rose in September against 36% reporting a fall, resulting in a better-than-expected balance of +3%. Grocery, footwear and leather products saw the highest growth.

Order volumes fell modestly with a balance of -4% - the slowest rate of decline since February 2008 -and are expected to stabilise next month (+1%).

The optimism has spread to Teesside high streets, with local retailers bullish ahead of the busy festive season. Middlesbrough cash-for-goods store CeX, which sells nearly-new gadgets, is forecasting second year revenues of pounds 1.3m after turning over more than pounds 1m in year one.

Meanwhile the Sony store in Middlesbrough said it had sustained sales of higher-end items through add-ons such as five-year warranties on large televisions.

Assistant manager Neil O'Rourke said: "On big ticket items there are bigger savings to be had."

Retail analysts say the proposed reintroduction of the 17.5% VAT rate next year - currently 15% - could spark a stream of pre-Christmas purchases.

David Brind, of Barclays Commercial Bank, North East, said: "The rise in VAT may bring good news for North-east businesses in the short-term as shoppers may consider picking-up larger discretionary items in advance of any percentage hike proposed for early next year."

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BUSINESS AS USUAL: For Rachel Hingley, the Middlesbrough Jessops store manager