CPP sells York headquarters for £5.3m

Credit card insurance business CPP is selling its York HQ to Gear4Music.

The deal, for the £5.3m head office building, was revealed after Gear4Music announced it would be expanding its base in York.

CPP employs around 300 people at Holgate Park. It had employed 1,200 before a mis-selling scandal in 2013 when the business was overseen by Hamish Ogston, a shareholder that spearheaded a coup with Schroders last year which ousted turnaround chief Steve Callaghan.

The business has slimmed down since then, and dropped into the red this year following restructuring costs. Turnover from continuing operations declined 4% to £73.6m for the year to December 2016, and it reported a loss of £1.9m in 2016, compared to pre-tax profits of £21.9m the year before.

CPP is not moving too far, consolidating its offices on the Holgate Park estate.

Jason Walsh, chief executive of CPP said in the York Press: “I am very pleased that we have been able to realise value from our head office building so that we can look to expand our operations across the Group.

“I am equally pleased we have reached this agreement with a local York business, Gear4music, who are looking to expand their operations while remaining in York.

“The leaseback arrangements as part of the sale provides us with the opportunity for our corporate centre to remain in York for the next 12 to 18 months while longer term options are considered.

“Our UK business will relocate to another office on the same business park in York that we hold a long term lease on.”