CAN Capital Woes Continue – Layoffs Commence
More information is slowly starting to come out about the recent C-level removals at CAN Capital. In the meantime, the company announced major layoffs just before the holidays. American Banker says the number is 136 employees laid off just at CAN’s Kennesaw, GA office.
Multiple brokers that have done business with CAN in the past have told deBanked that CAN is not actually servicing renewals for existing customers or that they’re only doing them on a highly selective basis, despite what the company said two weeks ago.
The company’s chief executive officer, chief financial officer and chief risk officer were all put “on a leave of absence” in late November after discovering that “some assets were not performing as expected and that there was a need for process improvements in collections.” All of their names have been removed from the leadership page on the company’s website.
While the collective expectation has been that CAN would resume funding new business again in January, the wave of layoffs do not inspire confidence. No executive replacements have been named and CAN’s chief legal officer still remains in place as the company’s “acting chief executive.” It’s a bizarre sequence of events that seems to indicate there will not be a return to normalcy any time soon.Last modified: December 19, 2016
Sean Murray is the President and Chief Editor of deBanked and the founder of the Broker Fair Conference. Connect with me on LinkedIn or follow me on twitter. You can view all future deBanked events here.