Feeds

Egg flees France

Oeuf sur le visage

  • alert
  • submit to reddit

Security for virtualized datacentres

Egg, the UK e-bank, is fleeing France and 450 employees. The cost of extricating itself from this debacle is €170m.

Prudential, the insurance firm and majority owner of Egg, has put the group up for sale, and US credit card firms and UK banks are said to be sniffing. But Egg is unwilling to pump in the money to turn round the French subsidiary and neither are the potential buyers.

This is how Egg puts it:

"The [selling the company] process has progressed to a stage at which it has become clear that no potential purchaser has the appetite for the investment required to deliver the French business plan, and accordingly, the board of Egg announces today that it intends to begin to take the necessary steps to close its business in France.

Egg's withdrawal from France comes as little surprise, with City folk speculating about its departure as far back as October last year. In 2003, Egg France lost £89m, dragging the group into loss.

Egg opened in France in 2002, following the £3.5m acquisition of Zebank - the country's first e-bank owned by owned by Groupe Arnault and Dexia.

At the time Egg said it would spend around £15m in development costs plus £50m in marketing. It forecast that it would attract one million punters in the first three years and predicted it would make a profit by the end of 2004.

But early attempts to promote its credit cards misfired, and the company underestimated the hold of store cards on the French market. As early as May 2003, Egg said it would have to double its investment in France. ®

Related stories

Egg buys Zebank
Egg has found that France is, indeed, a different country
Egg to cut 70 jobs
Egg blames France for big losses
Egg attracts interest from Capital One

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.