STRICKEN West Yorkshire-based consumer finance firm Cattles said around 450 jobs are under threat at its Welcome Finance business.
The Batley-based firm is winding down the Welcome loan book after failing to agree a deal with its creditors to restart lending in December.
The company is cutting costs across the Welcome business as a result and plans to close around 70 local branches and collection units nationwide.
The latest cull comes after the group announced more than 500 job cuts at the division last September.
Margaret Young, executive chairman of Cattles, said: “These proposals to further streamline the Welcome organisational structure have been put forward after an extensive review and careful consideration.
“We believe they are essential to Cattles achieving a more cost-efficient business model which mirrors the reducing size of the group’s loan book.”
The wind-up of Cattles’ Welcome Finance business is expected to take up to three years.
Cattles will continue to trade its doorstep lending arm Shopacheck and debt collection division the Lewis Group, with a view to developing these businesses.
Accounts for the nine months to September 30 last year highlighted the dire financial position of the business, with a loss before tax of £347.4 million.
Its £1.9 billion in loans and advances to customers was exceeded by gross borrowings amounting to £2.7 billion.
The firm has also had to restate its accounts for 2008 and 2007 after serious accounting issues were uncovered at the business, delaying the results and causing the suspension of its shares.
Seven senior bosses were shown the door early last year over a “breakdown in controls” that resulted in its policies on bad debts being applied incorrectly.