Dollar Financial Altering Business Unit

Biz Journals:

Dollar Financial Corp. said late Thursday it will restructure its We the People business by concentrating on selling franchise agreements.

The company said it would take a pre-tax charge of $21.4 million in the second quarter of next year as a result of the settlement and the restructuring.

The more than 140 We the People stores nationwide offer low-cost legal services.

Dollars Financial said it will receive $3.25 million from funds held in escrow since it bought We the People from IDLD Inc. in March 2005. Dollars Financial sued IDLD after the acquisition, alleging the seller concealed information about the business and breached certain agreements connected with the deal. The funds are a product of the case settling on Dec. 19.

Dollars Financial announced it will close its 12 remaining company-run We the People stores, instead focusing on selling franchises.