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Open Money issues statement on ‘restructuring’ process

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Manchester-based fintech Open Money has issued an official statement following reports over the bank holiday weekend that staff wages would be going unpaid as the company enters a CVA and undergoes “large scale restructuring” under its new owners.

The statement confirms that “payment of salaries for a number of members of staff across the business has been delayed pending legal and professional advice,” and adds that an unspecified number of redundancies are “likely.” It does not directly address reports that all, or part, of the company has entered administration, however Open Money has confirmed to Prolific North seperately that TopCo OML has indeed entered a CVA.

The company’s former owners, Anthony Morrow and Money Supermarket co-fouder Duncan Cameron, whose withdrawal of funds in March was reportedly a key factor in the business’s sale, retain a minority holding.

The full statement reads:

“OpenMoney Limited is to enter a period of essential restructuring following its majority sale to financial well-being entrepreneurs Will Mallard and Patrick Leahy last week.

The restructuring proposals, once agreed, will likely involve a number of operational redundancies after consultation. This is deemed necessary in order to ensure the successful and sustainable future of the business and its client facing operations – OpenMoney Adviser Services and WorkLife by OpenMoney.

Sadly, as a result of the seriousness of the situation, payment of salaries for a number of members of staff across the business has been delayed pending legal and professional advice.

Mallard and Leahy bought the business with the express intention to grow it. The proposed restructure, while difficult because of the impact on those members of staff whose roles will be made redundant, is essential if the business is to fulfil its potential for stellar growth.

It is important to stress that there is no impact to clients as a result of the proposed changes.

Founders Duncan Cameron and Anthony Morrow will continue to retain minority holdings in the business.”

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