Cash Store Australia faces an uncertain future
Loss making short-term lender Cash Store Australia Holdings has reported that it is no longer able to raise funding, saying regulatory changes and its ongoing losses have impacted on its ability to source necessary capital.Cash Store, which is listed on Toronto's TSX Venture Exchange, said in a statement that its inability to raise funds would "materially impact continuing operations" and would affect its ability to meet its obligations.It said its operating subsidiary would not make any further retention payments to its third-party lender.Over the past year the company has reported a series of quarterly losses. It has closed stores and, between March and April last year, it was forced to stop selling loans. In July, it lost its chief executive.The company has a network of 61 branches throughout Australia.Regulatory changes affecting the short-term lending market include new responsible lending rules, which require a much more thorough examination of the borrower's financial situation, as well as caps on interest charges.