Business

Money Shop owner receives bid approach

The Money Shop branch

Dollar Financial UK, the owner of payday lender The Money Shop, says it has received a bid approach from an unnamed suitor.

The firm said the offer would be considered "in the normal manner".

Dollar Financial also operates online lenders Payday Loans and Payday Express, as well as the pawnbroking firm Suttons & Robertsons.

The company has been put up for sale by its American owner following a difficult few years.

A clampdown on payday lending in the UK has led to lower profits, with the firm admitting to tougher trading conditions.

Loan charges were capped by the Financial Conduct Authority (FCA) in January 2015.

Since then the firm has closed hundreds of Money Shop branches, reducing the numbers from more than 600 to 230.

A spokesperson for the company said: "Dollar is aware of current media speculation regarding [the] sale of the business.

"An approach has been made and will be assessed in the normal manner. In the meantime, such discussions are a commonplace of business, and for the moment remain confidential between the parties involved."

Just over a year ago the company was ordered to repay £15.3m to customers who had been over-charged for loans. Dollar Financial UK says that it has now changed the way it operates.

The company, which is currently owned by the US firm DFC Group, is a major sponsor of Wolverhampton Wanderers football club.

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