The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Financial Services Financial And Insurance Activities Financial Service Activities, Except Insurance And Pension Funding 64.92 - Other credit granting
350 jobs Number of planned job losses
Announcement Date
9 January 2015
Employment effect (start)
23 February 2015
Foreseen end date
23 February 2015
Description
Payday lender, The Money Shop will make as many as 350 workers redundant across the United Kingdom. The company has 500 stores across the United Kingdom as well as three head office sites with 2,800 employees. The company is owned by US firm Dollar Financial and offers payday loans, pawn broking, cheque cashing, foreign currency, gold-buying services, pre-loaded holiday, cash debit cards and money transfers. It currently has the largest store-based network of shops in the UK’s short-term credit sector.
The 45-day formal consultation period has commenced and it is likely that as many as 200 of the 500 stores along with one of the head office sites will be closed. Staff have been told the restructuring plan will involve integrating the online and retail parts of the business in order to remove duplication resulting from previous acquisitions. The job losses follow the introduction of a cap on the costs of loans made by payday lenders in the United Kingdom, where payday loan rates are now capped at 0.8 per cent per day of the amount borrowed whereby no lender will have to pay back more than double the borrowed amount. The company has said that it will try to minimize the number of compulsory redundancies through national attrition.
Eurofound (2015), The Money Shop, Internal restructuring in United Kingdom, factsheet number 78137, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/78137.
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