Thorn Group is having trouble reinventing itself following the sale of its consumer finance business Radio Rentals in 2021, announcing yesterday that it will sell its commercial asset finance portfolio to Resimac. Thorn will receive around A$15 million for the book, which has around $150 million of receivables. Thorn deputy chair Paul Oneile said in a statement to the ASX: “This is a good outcome for our shareholders, given the challenges of developing the business to scale and the uncertainties arising from the current economic environment. “We consider the time is right for Thorn to progress with its strategy. We will be focusing on further opportunities, including new strategic investments in the non-banking financial services and wealth management sectors. Thorn is well capitalised to progress these opportunities.” Thorn is now a modest cashbox looking for a business to get into. For Oneile to suggest that it has a strategy is a big call; building a commercial finance business was its strategy. Last month, it increased its shareholding in consumer lender MoneyMe to 8.6 per cent, outlaying A$5 million to buy more than 64 million shares in a placement. At the time, Thorn flagged further share buying in MoneyMe, saying in an ASX statement: “Thorn’s directors continue to assess capital management initiatives and investment opportunities in the fintech sector that align with Thorn’s core business strategy as a diversified small business focussed financial services organisation. “The Thorn directors consider the further investment in MoneyMe aligns with Thorn’s business strategy.” Back in 2021, when Thorn sold Radio Rentals, it said its future was in developing an SME asset and invoice finance business. It promised to launch a suite of business finance products under its Thornmoney and Thorn Australia brands. It has not been smooth sailing. The business was funded by a warehouse facility. Between May 2020 and July 2022 the warehouse was in runoff due to breaches of its arrears covenant. Thorn was unable to sell its originations into the warehouse during this period. The warehouse was restructured, with a limit of $200 million, and re-commenced in August last year. The senior notes are held by a major Australian bank, with the facility available until August this year. It is possible that Thorn has not been able to renew the facility or could not secure additional funding. The $15 million from the sale of the asset finance portfolio will add to the company cash position, which was $28.8 million at March 31.