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Albermarle & Bond goes back to basics after rescue deal Albermarle & Bond goes back to basics after rescue deal
(about 1 hour later)
Former Bank of Scotland boss Sir Peter Burt has bought pawnbroker Albemarle & Bond out of administration, saving the majority of shops and 628 jobs. The former Bank of Scotland boss Sir Peter Burt has bought the pawnbroker Albemarle & Bond out of administration, saving the majority of shops and 628 jobs.
Administrators PricewaterhouseCoopers said the City grandee's investment vehicle Promethean had acquired the troubled pawnbroking business, including 128 of Albemarle's 187 pawnshops. The remaining 59 branches which employ 181 staff that are not part of the deal are likely to close. Administrators PricewaterhouseCoopers said the City grandee's investment vehicle Promethean had acquired the troubled pawnbroking business, including 128 of Albemarle's 187 pawnshops. The remaining 59 branches, which employ 181 staff that are not part of the deal, are likely to close.
Stephen Plowman has been appointed as chief executive to refocus Albemarle, which also offers payday loans, on its core business of pawnbroking and jewellery and return it to profitability. Albemarle called in administrators at the end of March after its lenders pulled the plug. After two profit warnings, it was so desperate for cash that it started melting down its gold jewellery stocks.Stephen Plowman has been appointed as chief executive to refocus Albemarle, which also offers payday loans, on its core business of pawnbroking and jewellery and return it to profitability. Albemarle called in administrators at the end of March after its lenders pulled the plug. After two profit warnings, it was so desperate for cash that it started melting down its gold jewellery stocks.
Burt told the Guardian last week: "We are certainly not going to be in the payday loan business. We are just going to go back to the old core business, the pawnbroking business, which has a bit of gold trading obviously."Burt told the Guardian last week: "We are certainly not going to be in the payday loan business. We are just going to go back to the old core business, the pawnbroking business, which has a bit of gold trading obviously."
He noted that pawnbroking "has been around a very long time" with the Medici family crest (three golden balls) becoming the sign of a pawnbroker. "Lending against security has been there for a very long time and Albemarle & Bond was a very profitable business. It had a market cap of £220m not very long ago [in 2011]." He added that three quarters of people buy back what they have pawned. He noted that pawnbroking "has been around a very long time". "Lending against security has been there for a very long time and Albemarle & Bond was a very profitable business. It had a market cap of £220m not very long ago [in 2011]." He added that three-quarters of people bought back what they had pawned.
Burt beat off competition from H&T, Britain's largest pawnbroker.Burt beat off competition from H&T, Britain's largest pawnbroker.
Mike Jervis, lead administrator at PwC said: "The deal announced today was the best offer received, preserving the most jobs and keeping the most stores open. All 120,000 pledged items remain safe and available for the customers to redeem." Mike Jervis, lead administrator at PwC, said: "The deal announced today was the best offer received, preserving the most jobs and keeping the most stores open. All 120,000 pledged items remain safe and available for the customers to redeem."
Declaring it was "the age of the pawnbroker", Albemarle sought to capitalise on the financial crisis and recession and opened new pawn shops and 40 pop-up gold buying stores. But it overexpanded and was soon caught out by the falling price of gold. Declaring it was "the age of the pawnbroker", Albemarle sought to capitalise on the financial crisis and recession and opened new pawn shops and 40 pop-up gold-buying stores. But it overexpanded and was soon caught out by the falling price of gold.