Two short-term lenders close doors in high street

Shut down: The Cash Store, above, and Cheque Centre have both closed down
Shut down: The Cash Store, above, and Cheque Centre have both closed down
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Two stores which had offered pay-day loans in Preston have shut down.

The Cash Store in Friargate closed its doors after the company went into administration, resulting in 120 job losses across the country.

Cheque Centre

Cheque Centre

And the Cheque Centre, also in Friargate, was closed down after bosses decided to withdraw from the short-term lending market.

The Cash Store had operated a short-term loan business from 27 stores in the UK, mainly in the North West and Yorkshire.

Administrators were appointed last month and Chad Griffin, from FTI Consulting, said: “All efforts were made to seek a buyer for the business, but the company had been loss making for some time.

“Our team is working with the employees to support them in their applications for statutory entitlements. The purchaser of the debts will be in contact with all existing customers in the near future.”

The Cheque Centre has also closed its doors, and a spokesman said: “Cheque Centre made the decision to withdraw from the short-term lending market earlier in the year, and since then we have been developing our future business model. As a result we are reducing the number of locations that we operate from across the United Kingdom as we reshape the services we provide.

“That has involved consultation with our employees and the closure of the Preston store. We want to thank everyone for their professionalism and their contribution to the business. We also want to thank our past customers.”

Town centre Coun Drew Gale said: “I have every sympathy for the staff members, but looking at the bigger picture I think losing pay-day lenders off the high street is no bad thing.”