Citigroup announces closure of two UK divisions

Citigroup, the US banking giant hit hard by the credit crunch, is closing two UK sub-prime divisions to concentrate on its core Citi and Egg consumer brands. The unsecured loan business CitiFinancial and the Future Mortgages division will stop offering new loans from today (May 20).

The closures will affect about 670 staff and it will close all 49 CitiFinancial loan centres and a call centre. Citi UK consumer business manager Bert Pijls says: “Following a strategic review of the consumer business in the UK, Future Mortgages and CitiFinancial were not identified as areas for strategic growth.

“By proposing to focus resource on our Citi and Egg brands, we are reflecting Citi’s global strategy and creating a platform for expansion in the UK personal finance market.”

In January, the bank announced a clearout of 161,000 Egg credit card customers because they had poor credit records. The move followed a review of its customer base after it acquired the online brand from Prudential in 2007.

Pijls took over in March after the departure of Ian Kerr, who implemented the decision to clearout the customers. Marketing director Alison Wright has also left the business, with Citi yet to appoint a replacement.

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here