Ashurst has edged Eversheds aside to advise camera retailer Jessops on the restructuring that has seen it close 81 stores and make 550 redundancies.

The top 10 City firm won the client through a recommendation by ABN Amro.

Jessops announced the cutbacks last week and also that it had secured a £66.5m debt facility with HSBC until 2008.

Ashurst's instruction is significant as Eversheds has been a longstanding adviser to the Midlands-based company and advised on its £160m initial public offering (IPO) in 2004. It is not unusual for national firms to miss out to top-tier City opposition once major banks become involved in a company's dealings, but the change often happens at the IPO stage. Clifford Chance advised debt provider HSBC on the 2004 IPO.

Jessops has suffered from internet and supermarket competition on products such as digital cameras over recent years. Following the cuts, which are intended to reduce total overheads by £15m, Jessops will have 234 stores remaining. The company will now focus on developing higher-margin products and services such as photo gifts and accessory sales.

Restructuring partner Giles Boothman led the Ashurst team alongside corporate partner Andrew Edge and senior associate Sian Robertson. Finance partner Jane Fissenden and pensions partner Steven Hull also advised. Denton Wilde Sapte advised HSBC, with finance partner Graham Paine leading the team, assisted by Tracey Fash.

Edge said: "We have been working intensely with Jessops since its profits warning in March and it is good to have got to this stage – but further work, particularly with the Pensions Regulator, is ongoing."

Commenting on the restructuring market, Boothman added: "I am always surprised when people say it is a quiet restructuring market because we have been flat-out for nine months. We are well-positioned to be one of the main forces in restructuring work coming up because of our private equity capability."

Shoosmiths also advised Jessops, acting on contractual issues relating to old stock.