Staff at a financial services company in Leeds that stopped offering payday loans market last month are now facing redundancy.
The Cheque Centre, which has shops in the Merrion Centre, Bramley, Crossgates and Morley as well as Wakefield, Castleford and Dewsbury, has announced that a number of outlets will be axed as part of a company restructure.
The business, which specialises in financial services including pawning, money transfers and cashing of cheques, pulled out of the payday loans market in May following criticism of the way the company dealt with customers who were struggling to repay debts.
A spokeswoman said: “Following revision of the operating model after withdrawing from the payday market we can confirm that we will look to reduce the number of locations from which we currently operate.
“A number of restructuring options are being considered and we have now entered a period of collective consultation with employees.
“Further details will be shared when they are available.”
She said numbers of shop closures and redundancies had yet to be decided.
One staff member, who did not want to be named, said staff in Leeds were called to a meeting in the city centre yesterday and were told that several shops would be closing.
She added: “We have got until the end of August. We were told in April that we were stopping doing loans and from that point onwards we have been told various things but reassured that our jobs were safe and now this happens. It feels like they have been stringing us along.”