FINTECH AT RISK OF REDUNDANCIES & PAY DELAYS FOLLOWING TAKEOVER DEAL

Jobs have been put at risk at OpenMoney after a takeover deal was agreed.

The Manchester fintech is undergoing what has been described as an ‘essential restructuring’ with employees at its headquarters and on the operational side of the business most affected. 

The company which is based at the ABC Building in Manchester’s Quay Street, has reportedly been sold to entrepreneurs Will Mallard and Patrick Leahy.

Mr Mallard describes himself as a social impact investor while Mr Leahy is a UK director of DeepInspire and co-founder of Geissen and Elva.

It is also understood that OpenMoney’s founders are to remain as minority shareholders in the business. The company was established in 2016 by Anthony Morrow and Moneysupermarket.com founder, Duncan Cameron.

A statement from the new owners said: “The restructuring proposals, once agreed, will likely involve a number of operational redundancies after consultation.

This is deemed necessary in order to ensure the successful and sustainable future of the business and its client facing operations – OpenMoney Adviser Services and WorkLife by OpenMoney.”

The statement goes onto say: “Sadly, as a result of the seriousness of the situation, payment of salaries for a number of members of staff across the business has been delayed pending legal and professional advice.

The pair bought the business with the express intention to grow it. The proposed restructure, while difficult because of the impact on those members of staff whose roles will be made redundant, is essential if the business is to fulfil its potential for stellar growth.

It is important to stress that there is no impact to clients as a result of the proposed changes.”

OpenMoney was originally backed by Evestor and its original focus was to make financial advice more affordable and accessible. Mr Morrow left the business in 2020 but returned at the start of this year.