NextPoint Financial, which owns Liberty Tax Services, is ceasing to make loans through its LoanMe operations, which it acquired for about $120 million a year go. The company, which is based in Hurst, Texas, but trades on the Toronto stock exchange, said it has cut LoanMe’s workforce and will only continue to service outstanding loans.NextPoint had hoped to cross sell services between Liberty and LoanMe after buying them last year and establish a one-stop shopping for providing consumer financial services.
Instead, it attributed issues with LoanMe with its failure to file financial reports for the year ended December 31 and the first quarter ended March 31 and most recently postponed its annual meeting until the late reports can be filed.
In March, NextPoint issued a statement it probably “substantially” overpaid for LoanMe, attributing part of that problem to the incorrect calculation of EBIDTA, which was utilized in calculating the purchase price, and said it would conduct impairment on goodwill and other intangible assets.
In early May, NextPoint named its controller, Scott Wright, as its new CFO effective July 1 and two weeks later named Jean Birch as the new board chairperson.
