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Signet Closes Sale of Prime Credit Program

Oct 24, 2017 5:29 AM   By Rapaport News
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Signet Jewelers has completed the first stage in outsourcing its in-house credit program.

This includes the sale of its prime-only receivables to the card services business of Alliance Data Systems Corporation for $960 million, Signet said. Prime credit relates to customers with a strong likelihood of making payments. The deal also involves contracting out the servicing of non-prime products sold on credit to Genesis Financial Solutions.

Alliance Data will become the primary provider of credit, including funding, underwriting and servicing, to Signet’s US stores under a seven-year agreement. Genesis will provide credit-servicing functions for Signet’s existing non-prime receivables, as well as future non-prime accounts, in a five-year deal.

Furthermore, Signet has outsourced its lease-purchase payment program to Progressive Leasing, a subsidiary of lease-to-own retailer Aaron’s. Lease-purchase is an incremental payment option available for customers who do not qualify for Signet’s credit programs, or who do not wish to pursue a credit option.

“The successful completion of the first phase of strategic outsourcing of our credit portfolio has allowed us to reduce our outstanding debt and return capital to our shareholders,” said Signet CEO Virginia Drosos.

A priority of Signet’s credit deal has been to minimize impact on its credit customers and substantially maintain its net sales, she added.
Tags: Aaron’s, Alliance Data Systems Corporation, credit, Genesis Financial Solutions, Progressive Leasing, Rapaport News, Signet, Signet Jewelers, Virginia Drosos
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