CPP takeover talks with firm's founder terminated

CPP building in York
Image caption CPP's current bank facilities expire on 30 September

CPP Group founder Hamish Ogston has pulled out of takeover talks for the troubled credit card protection firm.

CPP, fined £10.5m last year for mis-selling insurance products, also announced that Mr Ogston had resigned from the board.

York-based CPP, which employs about 900 people, said it was still in talks with its lenders and other possible investors about long-term funding.

As well as the fine, CPP must pay millions of pounds in compensation.

In April, the company raised about £26m from the sale of its US business, but needs to raise additional funds before its existing bank facilities expire on 30 September.

CPP sells products such as credit card protection through banks and building societies.

In November, the Financial Services Authority ordered CPP to compensate customers over the mis-selling, which took place between 2005 and 2011.

The fine and the loss of several contracts left the company struggling to find financial backing.

CPP's share price, which two years ago was above £3, is now below 3p.

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