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| Version 2 | Version 3 |
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| Loan firm set to cut 1,000 jobs | Loan firm set to cut 1,000 jobs |
| (about 8 hours later) | |
| UK firm Cattles, which offers loans to risky borrowers, is planning to cut 1,000 jobs after its business was hit by the effects of the credit crunch. | UK firm Cattles, which offers loans to risky borrowers, is planning to cut 1,000 jobs after its business was hit by the effects of the credit crunch. |
| The sub-prime loans firm says it must cut costs as it expects its Welcome Finance personal lending arm to cut new business by three-quarters this year. | The sub-prime loans firm says it must cut costs as it expects its Welcome Finance personal lending arm to cut new business by three-quarters this year. |
| The 1,000 job cuts, which includes the closure of its Hull operation, accounts for about 20% of the firm's workforce. | The 1,000 job cuts, which includes the closure of its Hull operation, accounts for about 20% of the firm's workforce. |
| The firm said the move would allow it to weather current economic conditions. | The firm said the move would allow it to weather current economic conditions. |
| It is estimated that about 400 of the 1,000 Cattles jobs to go will be in Hull, with the majority being lost in the Welcome Financial Services arm of the business - which has two call centres in the city. | It is estimated that about 400 of the 1,000 Cattles jobs to go will be in Hull, with the majority being lost in the Welcome Financial Services arm of the business - which has two call centres in the city. |
| Survival plan | Survival plan |
| Cattles is in talks with banks over refinancing, and last month revealed it was seeking to raise £200m from shareholders to bolster its finances. | Cattles is in talks with banks over refinancing, and last month revealed it was seeking to raise £200m from shareholders to bolster its finances. |
| In the wake of the US housing slowdown and a sharp rise in defaults among risky borrowers, it has become increasingly hard for banks to raise capital. | In the wake of the US housing slowdown and a sharp rise in defaults among risky borrowers, it has become increasingly hard for banks to raise capital. |
| Cattles - which trades as Welcome Financial Services, the Lewis Group, and Cattles Invoice Finance - aims to offer financial services to those without access to mainstream facilities. | Cattles - which trades as Welcome Financial Services, the Lewis Group, and Cattles Invoice Finance - aims to offer financial services to those without access to mainstream facilities. |
| The firm said it would cut new business volumes at its main lending business, Welcome, by 75% in 2009 compared with 2008. | The firm said it would cut new business volumes at its main lending business, Welcome, by 75% in 2009 compared with 2008. |
| "We have not taken these decisions lightly and we firmly believe that by cutting costs and preserving capital in the business we can continue to trade profitably, [and] weather the current economic conditions," said chief executive David Postings. | "We have not taken these decisions lightly and we firmly believe that by cutting costs and preserving capital in the business we can continue to trade profitably, [and] weather the current economic conditions," said chief executive David Postings. |
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| Jobs threat at loans firm |