OLD MARKET CAPITAL Corp (OMCC): restructuring charge — Nicholas Financial to close 34 branches, cut 82% of workforce, outsource servicing to Westlake

OLD MARKET CAPITAL Corp

Closes 34 of 36 branches; workforce reduction of ~173 employees (82%).
Total expected charges $11.1M-$12.4M (cash $11M-$12.3M; $0.1M non-cash lease impairment).
Outsources servicing, collections and recovery to Westlake Portfolio Management; expects significant annual cost savings.
Company to continue auto finance purchase/origination under regionalized model; CEO says savings to pay down Wells Fargo line.
Servicing agreement with Westlake includes boarding and monthly fees; early termination fee exceeds $1M.

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

OLD MARKET CAPITAL Corp announced a restructuring with charges of between $11.1 million and $12.4 million affecting 34 of its 36 branches (approximately 173 employees, representing 82% of the Company workforce).

Type: restructuring
Charge: between $11.1 million and $12.4 million
Affected area: 34 of its 36 branches
Headcount: approximately 173 employees, representing 82% of the Company workforce

Exact text from the filing

the Board of Directors of the Company determined on November 3, 2022 to close 34 of its 36 branches. Consolidation of workforce associated with these closures is expected to impact approximately 173 employees, representing 82% of the Company workforce as of such date. The expected total charges are between $11.1 million and $12.4 million

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OLD MARKET CAPITAL Corp filing history →

Source: SEC EDGAR

accession 0000950170-22-021926

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