Sept 27 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
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
Shares of the company closed at $37.07 on Wednesday on the
New York Stock Exchange.