Stockport-based payday lender and money transfer business The Cash Store Ltd has entered administration.
A subsidiary of Canadian business The Case Store Financial Services Inc., the company’s UK operations have ceased trading following the appointment of FTI Consulting LLP as administrators.
The Cash Store operated as a fully FCA-regulated payday lender primarily in the north west and Yorkshire regions.
All 27 of The Cash Store’s UK outlets are due to close, resulting in all 120 staff being made redundant. Administrators have also confirmed 13 redundancies at the company’s UK head office in Stockport.
Following a loss-making period, the company was reliant on funding from its Canadian parent, which was recently withdrawn.
Chad Griffin and Simon Kirkhope of FTI Consulting were appointed as joint administrators to the company on 1 August.
A statement from the administrators said: “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.”