147 jobs go as Friends First Finance closes

FINANCIAL services company Friends First yesterday announced the closure of Friends First Finance and the restructuring of its remaining business with the loss of 147 jobs.

The company said Friends First Finance had been badly affected by the credit crunch and it could no longer sustain its business model of borrowing from the inter-bank market.

“The closure of Friends First Finance will unfortunately result in the loss of 98 jobs on a phased basis as the business is wound up over the next five to seven years,” it said.

Friends First said it also needed to “address the new realities of the life and pensions market” which it said had seen a decline in new business of about 40% during 2009.

“The company is seeking to reduce the remaining workforce by 49 people during 2009 through a programme of voluntary redundancies. A new career break programme has also been introduced,” it said.

Adrian Hegarty, group chief executive of Friends First, said it had been a difficult decision to reduce the workforce.

“The closure of Friends First Finance is a necessary decision because of the lack of availability of credit, at appropriate rates, combined with the downturn in the Irish economy. These factors have undermined the business significantly. It is with deep regret that we’ve reached this decision as Friends First Finance was a successful business for the past 12 years, run by a dedicated and skilled workforce.”

UNITE, the union representing workers at the company, said it would be seeking urgent talks with management over the announcement.

“This is a difficult day for a loyal workforce that has performed well through recent trying times,” said Noirín Greene, UNITE regional officer. “UNITE has been assured by management at Friends First that it will engage in meaningful consultation on the closure of Friends First Finance and the creation of a career break scheme.

“We will urgently look to explore ways in which the number of compulsory job losses might be minimised through redeployment to other sectors of the business. We will also be negotiating the best possible terms for the voluntary redundancies which the company has announced it is to seek in the main body of its workforce.”