Warehouse Group sells off finance business

the_warehouse_storeWarehouse Group has confirmed the sale of its financial services business, Finance Now, to a subsidiary of SBS bank for $18 million.

In it’s latest trading update, Warehoused said Financial Services recorded a first-half operating loss of $5.2 million, up from a loss of $2.7 million a year earlier. The unit’s sales in the first half rose to $10.3 million from $8.1 million.

Joan Withers, chair of The Warehouse Group, said the transaction would enable The Warehouse Group to focus its capital and people resources on the transformation of its retail business.

“This is our current top priority and will remain so over the next few years,” she said.

The purchase price is expected to result in a non-cash impairment of software assets of approximately $16M in the FY17 financial results.

Diners Club New Zealand remains under the ownership of The Warehouse Group.

Warehouse Group said it will continue to offer branded financial services to its customers, supported by Finance Now.

Nick Grayston, CEO of The Warehouse Group, said both parties were looking forward to continuing to work together.

“The Warehouse Group Financial Services will remain as a business and continue to provide financial products and services to customers of the wider Group,” he said.

“We have a dedicated team to support the transition, who will work closely with both The Warehouse Group Financial Services and Finance Now to deliver seamless customer experience.”

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