Shares in Jessops, the camera retailer, plunged 73 per cent, or 34p, to 12.5p today after it issued its third profit warning in less than 80 days and gave warning that it would not have enough cash to order Christmas stock.

While the company talks to its bank, HSBC, Robin Whitbread, the commercial director, who is responsible for day-to-day operations, has left the company with immediate effect and Gavin Simonds, the chairman, is standing down.

Chris Langley, the chief executive, is beginning a strategic review of the business that is likely to look at whether to keep all its 318 high street stores or focus more on online sales and staffing at its Leicester head office.

Jessops said that a digital camera and camcorder price war meant that sales by value had plummeted, and that it would dive £8.5 million into the red in the first half, compared with the £6.8 million profit it had predicted only a month ago and the £19 million it had expected in November.

Sales of compact digital cameras, already down more than 10 per cent in January at the time of the last warning, had deteriorated further and were down 16 per cent in February, while camcorder sales had fallen from 17 per cent last month to 22 per cent.

Mr Langley gave warning that the first-half losses would be before exceptional costs as a result of his review.

The company began talks with HSBC after its profit warning last month.

He said: "There will be a seasonal working capital uplift requirment in the autumn in excess of our available banking facilities."

However, he emphasised that Jessops still had the support of HSBC.

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