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PAYDAY LENDER THE CASH STORE GOES BUST

Published on:February 22, 2015Author:Liam Wright

Nearly 120 jobs have been lost after payday lender The Cash Store went bust.

The company which is based in Stockport has now entered into an administration with FTI Consulting appointed as administrators. Administrators have confirmed that 13 jobs have been lost at the Stockport headquarters.

The Cash Store Ltd is a subsidiary of The Cash Store Financial Services Inc based in Alberta, Canada.

The company has 506 branches in Canada and 27 across the UK, although many of them are in the North West.

Administrators from FTI Consulting said: “Cash Store was loss making and had been reliant on funding from its Canadian parent company which was recently withdrawn.

“Cash Store operated as a pay day loan business from 27 stores in the UK and was FCA regulated.

“The majority of the stores were based in the north west of England and Yorkshire.

“Efforts have been made in advance of the administration to seek a buyer of the business as a going concern.

“Unfortunately no offers were received for the business as a going concern. Therefore, the business is ceasing to trade with immediate effect and the loans have been sold to a third party.

“Customers will be contacted in due course by the purchaser of the debts with information on how customer accounts will be handled.

“Unfortunately all of the Cash Store’s 120 employees will be made redundant, the majority with immediate effect.

“The administrators’ team are working with the employees to support them in their applications for statutory entitlements.  All employees’ arrears of wages have been paid in full.”

If your business is struggling with financial difficulties you could benefit by speaking with The Business Debt Advisor and discussing the options available to you.