28/08/2020 - 15:16

Grimshaw to leave Cashies

28/08/2020 - 15:16

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Cash Converters has posted a $10.5 million loss, while chairman Stuart Grimshaw is the latest to leave the company.

Grimshaw to leave Cashies
Cash Converters has about 20 stores in Perth.

Cash Converters International has posted a $10.5 million loss, while chairman Stuart Grimshaw is the latest to leave the company.

The Perth-based lender and retailer reported a drop of only 1 per cent in revenue, to $279 million in the year to June.

The business said it had not been eligible for the JobKeeper wage subsidy, and its corporate stores had remained open for business throughout the financial year.

Some franchisees, particularly in international markets, were closed, however.

The $10.5 million loss compared to a $1.7 million loss in the year to June 2019.

The big change was in class action settlement costs, following the October 2019 announcement of a settlement in the Lynch Class action, which would cost $42.5 million.

The class action reportedly followed the company charging interest rates in excess of 175 per cent from June 2009 to June 2013.

An earlier class action, the Mckenzie class action (not related to the author), had been settled with a $10.6 million payment signed in October 2018.

Chair Stuart Grimshaw stepped down from the business, effective today.

Mr Grimshaw had been the nominee of US-based EZCorp, a major shareholder of Cash Converters.

He will be replaced by Jason Kulas as EZCorp’s nominee.

Dallas-based Mr Kulas joined EZCorp in February, and commenced as chief executive in July.

Cash Converters has had a number of changes in its leadership team in recent years.

Michael Murphy had been appointed chief financial officer in November, but his departure was announced in March.

Brendan White was contracted as chief executive from December 2018 and left in February 2020.

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