Photographic retailer Jessops notched up losses of £5.9 million in the six months to March 31.

Its interim results revealed today that like-for-like sales had fallen by 4.5 per cent and gross profit margin had declined to 28.1 per cent from 30.8 per cent for the same period a year ago.

The retailer also warned that, while talks with lenders continued, shareholders were unlikely to realise any value from their equity.

Executive chairman David Adams said: "Since my arrival at Jessops in 2007, the team has worked very hard in extremely challenging conditions to secure a successful future for the business. We have reduced costs wherever possible, worked closely with suppliers and explored a range of options to deliver a sustainable future for Jessops.

"In January we said that we were in discussions with our advisers and HSBC Bank and that it was highly likely that this exercise would involve a fundamental restructuring of our debt.

"These discussions continue. Regrettably however, against the backdrop of the challenging retail environment and the historic level of debt, the board believes that it is unlikely that any value will be attributed to shareholders.

"Nevertheless we are still working with HSBC towards a solvent solution for the business."