Cash America to shut jewelry-only pawn shops in Mexico
Sept 27 |
Sept 27 (Reuters) - Pawn and payday lender Cash America International Inc said it plans to close its jewelry-only pawn shops in Mexico and will operate only full-service pawn shops in the country, as it looks to cut losses.
The company said it had incurred a loss of about $8.3 million from its Mexico-based pawn operations for the six months ended June 30.
Cash America said it plans to shut 147 jewelry-only pawn shops by the end of this year and expects the closures to cut its losses from foreign pawn lending operation in 2013.
It expects to book related charges of between $28 million and $32 million in the three months ended Sept 30.
Cash America, which canceled a $500 million initial public offering of its online lending arm in July, had warned it faces a disappointing full year.
The company, which competes with Ezcorp Inc and World Acceptance Corp, operates pawn shops and payday chains in the United States and Mexico through Cash America Pawn, SuperPawn and Cashland stores.
Pawn lending accounts for roughly 20 percent of the company's revenue.
Shares of the company closed at $37.07 on Wednesday on the New York Stock Exchange.
- Tweet this
- Share this
- Digg this