More job losses at Cattles
STRUGGLING sub-prime lender Cattles has announced further possible redundancies as it looks to cut costs.
The group said that proposed changes in the organisation of its Shopacheck business would see 290 staff at risk of losing their jobs.
However the group said that it is likely that only around 75 positions made redundant as the majority of the employees will be “offered new roles within a flatter organisational structure that brings Shopacheck closer to its customer base”.
Last month Cattles warned that 450 staff face redundancy at its Welcome Financial Services division.
Shareholders at the Birstall-based lender have previously been told that Cattles is unable to recommend a business plan to its financial creditors that would allow its Welcome Financial subsidiary to lend to existing or new customers.
Cattles is focusing on collecting existing customer loans at Welcome.
Cattles has already announced the closure of 70 local branches and collections units at Welcome nationwide.
In November, Cattles revealed it made a £555.3m loss in 2008. Bad debt charges totalled £778.9m last year.
The lender also lost £374.4m in the nine months to the end of September 2009.
The group has been hit by accounting failures, which meant bad debts were not properly accounted for and several members of its senior management team have left the business.
