C&G future uncertain as Lloyds stalls
LLOYDS Banking Group said yesterday it was reviewing a decision to close all branches of its Cheltenham & Gloucester (C&G) unit, surprising employees and investors.
Lloyds Banking Group, 43 per cent owned by the government, had said in June that the 164-branch network of C&G, which specialises in mortgages and savings, would be closed in November as part of a shake-up of its loan operations.
The bank declined to say more on the reason behind the move, and gave no details on a possible timescale for the review.
Some 833 full-time workers would have been cut as a result of the closure.
They will now remain in place while the bank considers its options.
“Today’s announcement comes with no warning and will make the workforce wonder whether their bosses have any long-term strategy for the future of the bank,” said Rob MacGregor at Unite, one of the unions representing C&G employees.
Unite has demanded an urgent meeting with Lloyds to clarify “the format and timescales of the review”.
Lloyds said in a brief statement that “customers will continue to use the C&G network as usual.”
Shares in Lloyds, already higher after an earlier upgrade from analysts at Royal Bank of Scotland, gained further ground in afternoon trade on hopes the review could mean a sale of C&G – appeasing potential EU concerns over its market share and raising much-needed cash for the loss-making bank.
Lloyds shares were up two per cent at 98.72p, against a virtually flat FTSE 100.