Camera retailer Jessops today said sales remained under pressure as talks continue over a deal to ensure its survival.

The chain, which has 211 stores including outlets in Liverpool, Southport, Warrington and Chester, reported a like-for-like sales fall of 4.7% for the 12 weeks to August 16, compared with the year-on-year decline of 3.6% seen in the eight weeks to May 24.

Jessops said the retail environment continued to be difficult and that it expected to post another loss in the current financial year.

It is in talks with lender HSBC about a "fundamental" restructuring of its debt, but repeated earlier warnings that shareholders were unlikely to be left with any value following the deal.

"Discussions with HSBC continue working towards a solvent solution," Leicester-based Jessops said.

HSBC recently waived a loan repayment of £3m - due at the end of May - until September 2010, when a separate £4m repayment is also due. A further £5m is due for repayment in May 2011.

The company’s debt pile stood at around £60m at the end of March.

In May, Jessops - the UK’s largest photographic retailer - reported half-year losses of £6.3m for the six months to March 31. This was after full-year losses of almost £50m in the previous financial year.

Strong competition on the high street and from supermarket retailers has put pressure on the firm, while last year saw the first slowdown in the digital camera market for many years.

Jessops has restructured the business, including through the closure of stores, and made a significant number of product launches but still expects to report a loss before one-off items in the current year.