Short term lender, Cheque Centre has gone into administration. The firm once had more than 300 high street branches but last year closed its remaining outlets to focus on trading over the internet under the Square Today brand.
FRP Advisory have been appointed administrators. FRP Advisory said the shift in business strategy left Cheque Centre with “a number of sizeable, historical contractual and lease liabilities resulting in an ongoing drain on the company’s working capital”. The firm had explored a range of restructuring options, but the administrators said “unsustainable pressure” had been placed on its cash flow in the absence of a cash injection.
Anthony Collier, partner at FRP Advisory, and joint administrator, 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.”