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Banksia branches close, 47 jobs to go

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MELBOURNE, Nov 13 AAP

November 13 2012, 6:25PM

Almost 50 staff will lose their jobs with all of Banksia Securities' branches to close.

Non-bank lender Banksia Financial Group has reviewed its operations and decided to close all of subsidiary Banksia Securities' 10 branches, Banksia Securities receivers McGrathNicol said on Tuesday.

A total of 47 staff will lose their jobs: all 28 branch staff plus 19 positions at the group's administration centre in Kyabram in regional Victoria and its head office in Melbourne.

McGrathNicol said the remaining 37 staff at the Kyabram and Melbourne offices were focused on activities related to debenture holder returns including loan recovery processes and dividend payment requirements.

The receivers will ensure all entitlements of all employees are paid in full, McGrathNicol said.

The eight Victorian branches - in Ballarat, Bendigo, Echuca, Geelong, Kyabram, Shepparton, Tatura and Warrnambool - and another two in Adelaide and Albury, NSW, will close on Friday.

Banksia Securities went into receivership on October 25 owing $660 million to about 3000 investors living mainly in regional Victoria.

Banksia Securities had offered investors high interest on debentures and lent their funds out as mortgages or commercial property loans.

McGrathNicol has told Banksia Securities investors they can expect a "meaningful" return on their investment but they are not expected to recover all of their funds.