510 jobs could be lost at subprime lender Cattles

Subprime mortgage lender Cattles announced today (September 2nd) that it may be cutting up to 510 jobs at one of its units.

The losses, expected to be at its Welcome Finance unit, could potentially see 30 branches cut to reflect current levels of lending.

As well as shares being currently suspended, the company has £700 million of bad debt after being hit by the credit crisis, which in turn led to management skills being questioned and the sacking of its finance director and senior executives.

Chairman Margaret Young said it is still in "constructive discussions with its key financial creditors to obtain a standstill agreement".

The company, which was founded in Hull in 1927, said today that it is looking at closing branches where leases have expired or are due to expire.

A review, which is currently underway, will involve the company reducing the number of sales and support teams, and it is set to enter into a consultation period with staff affected by the proposals.

The news comes on the day the CMI launches its Dr Redundancy help service.