welcome UPDATE 1-Cattles to shut car retailer unit

[zaidey]

this made me laugh....o my word how this is how karma really works

 

Tuesday April 28, 11:33 AM

UPDATE 1-Cattles to shut car retailer unit, cut 130 jobs

* Says to close Welcome Car Finance to conserve cash

* Says costs of closure estimated at 5 mln stg

 

(Adds details)

 

April 28 (Reuters) - Troubled subprime lender Cattles Plc said on Tuesday it proposed to close its direct distribution car retailer, Welcome Car Finance, to preserve cash and improve liquidity, and would cut about 130 jobs within the group.

 

Cattles (LSE: CTT.L - news) , which lends at higher interest rates to people in Britain who cannot get credit from mainstream banks, said that the costs of the closure were estimated at 5 million pounds ($7.28 million).

 

The company said Welcome Car Finance had been selling stocks of cars it had from the end of last year but 'without additional funds to acquire new stock, the business model will become unviable and it is likely that Welcome Car Finance will start to absorb cash'.

 

The company relies on wholesale borrowing for funding, which has become more expensive since the onset of the credit crunch. On April 23 it requested suspension of trade in its shares and bonds as talks were on to refinance its debt.

 

($1=.6867 Pound)

 

(Reporting by Austin Lobo in Bangalore; Editing by Gopakumar Warrier) Keywords: CATTLES/

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i do feel sorry for the people losing there jobs but not for cattles or welcome....

 

update this is from cattles own website

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RNS Number : 2770R

Cattles PLC

28 April 2009

 



28th April 2009

 

 

CATTLES PLC

 

Proposal to close Welcome Car Finance

The Board of Cattles announces its proposal to close its direct distribution car retailer, Welcome Car Finance. This decision has been taken to further conserve cash and improve liquidity within the business.

Welcome Car Finance has traded successfully during 2009 selling the stocks of cars it had from the end of last year without the acquisition of any new vehicles. However, without additional funds to acquire new stock, the business model will become unviable and it is likely that Welcome Car Finance will start to absorb cash.

 

 

Consultation with employees has begun over a reduction of around 130 jobs within the Group. The costs of closure are estimated at £5 million.

 

 

The Board has previously reported that it believed Cattles was in breach of covenants under its borrowing arrangements. Cattles continues in discussions with its banks and the holders of its outstanding Eurobonds and US Private Placement Notes. Management is working closely with its debt providers to sustain their support for the Group's programme of action to stabilise its financial position. The closure of Welcome Car Finance is another step aimed at reducing costs, preserving liquidity and reshaping the Group.

 

 

- ENDS -

 

 

ENQUIRIES

 

 

David Postings CEO Cattles plc Tel: 020 7269 7252

Paul Marriott, Financial Dynamics

 

 

 

 

 

This information is provided by RNS

The company news service from the London Stock Exchange

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lol u beat me to it

Edited April 28, 2009 by zaidey
u beat me to it

[tendogs]

As you sow so shall you reap

[ncf355]

Nice

 

As you say, pity those losing their jobs but Cattles/Welcome get what they deserve (and then some!)