‘End of a chapter in payday loaning industry’ as former top lender goes into administration

Anthony Collier and Tom MacLennan, partners at FRP Advisory, have been appointed as joint administrators to Cheque Centres Limited, which last year closed all its remaining “Cheque Centre”-branded financial services shops and more recently traded online as “Square Today”.

Cheque Centre historically traded from over 300 stores. Following a strategic review and a lack of customer demand across the entire market, the company ceased trading from its high street stores, moving to an online business model under the “Square Today” brand.

Following this transition, a number of sizeable, historical contractual and lease liabilities remained within the business, resulting in an ongoing drain on the company’s working capital. As such, the company explored several solvent restructuring options, but without an extra injection of capital unsustainable pressure was placed on the cash flow. Therefore, the only viable option was to commence a wind down of the business and ultimately seek the protection of the administration process.

Mr Collier said: “Cheque Centre was in the process of emerging from its legacy business with its Square Today online platform, however in its current form the business could not sustain its ongoing costs and meet its historical liabilities.

Following our appointment, the joint administrators will evaluate the financial position of the Company and all 11 of the Company’s staff are being retained whilst we assess the options for the business.”