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Cash Store Financial Services Inc CSFS



NYSE:CSFS - Post by User

Comment by regionalretreaton Jun 26, 2014 5:47pm
196 Views
Post# 22698491

RE:RE:RE:RE:RE:RE:2'nd Hand Info

RE:RE:RE:RE:RE:RE:2'nd Hand Info
Cashhhhstore911 wrote: I do agree partially but remember most of the branches have been there for a long time and customers already know about them and each location has a customer list for which others will pay thousands. Instead of starting a new business from scratch, its a good way to get into this industry as there are location already operating and a system is in place. Also, they must be getting it for cheap & will cherry pick only profitable locations in Ontario. Other locations will simply close. Once the name change is done, the new company will apply for fresh new license. Its hard to say what will happen to employees at this point but will get clearer by end of July.


So are you suggesting, then, that Mystery Buyer X will buy CSFS, then wholly rebrand the Ontario locations - meaning new signage and interiors - and then apply for a new license? Seems wasteful to buy a company and then, in the country's biggest market, essentially start a whole new company. It's especially unlikely, as any buyer would likely be put off by CSFS's lack of security protocols and apparatus (i.e. no glass, no safety system, often broken or missing cameras, etc, etc). 

Remember, there are no profitable locations in Ontario. There are only formerly profitable locations. Additionally, Cash Store / Instaloans, as noted by a previous poster, maintain little customer goodwill; being the most expensive and difficult to use player in the industry will do that to a brand. The barrier to enter the market is relatively low - why buy The Cash Store? 

All that said - if a buyer did materialize, they could resurrect CSFS by modernizing and consolidating the locations, dealing in actual cash, and looking to upgrade their front line staff.
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