NORTHERN Rock’s new owner Sir Richard Branson has spoken of his excitement for the future of the bank.
The Gosforth-based business was sold to Virgin Money in a £747m deal – which includes 75 branches and 2,100 staff, one million customers, a £14bn mortgage book and retail deposits worth £16bn
The buy-out was hailed as good news for the North East, with the new company headquarters to remain in the region and jobs protected from compulsory redundancies for the next three years.
Speaking to the Journal last night, the business magnate said he was looking forward to working with the Newcastle team. Mr Branson said: “This move is tremendously exciting. Northern Rock is very much part of Newcastle and the North of England and I am looking forward to coming up in January.
“I had tried to buy Northern Rock before and I am very much a believer in, if at first you don’t succeed, try again.
“We decided to keep the bank in Newcastle – it is through no fault of the staff that Northern Rock got into trouble. Geordies are known for their hard work and the staff have shown incredible loyalty through adversity. We hope now to give them a bit of stability. In the years to come, if we are as successful as we hope, we may be able to take on more staff in the region.” He said he has already received messages of support from the region. “I have had lots of lovely twitter comments from staff at Northern Rock, he said. “I am equally delighted about it.”
Virgin Money will base its operational headquarters in Newcastle and there will be no compulsory redundancies beyond those already announced by Northern Rock for at least three years from completion of the deal. The company said the total number of Rock branches would be retained and, in due course, extended.
Northern Rock’s current commitment to the Northern Rock Foundation will be extended, in respect of its existing business, until the end of 2013.
Virgin Money chief executive Jayne-Anne Gadhia said the company’s goal was to expand the overall business and promised a “long-term” commitment to the region – although the Northern Rock name will disappear.
She also said the company would love to talk at the “right time” to Newcastle United about sponsoring the club, while stressing nothing was currently planned.
