During the second quarter of fiscal 2003, which ends Dec. 31, ACE Cash Express will record a pre-tax gain of about $900,000 from the deal. However, the gain will be largely offset by costs associated with discontinuing the GNB loan product. The company expects to complete this by the end of the quarter.

ACE Cash Express plans to use proceeds from the sale to open stores in other markets, to reduce term indebtedness to bank lenders, and for general working capital purposes. "We believe that this particular sale makes sense for both companies and is a good economic deal for ACE, as 14 of the 19 stores were well below our expected profitability per store and therefore did not meet our return expectations," says Jay B. Shipowitz, the company's president and chief operating officer.

ACE Cash Express, based in Irving, TX, is a large check-cashing chain and provider of related retail financial services.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.