European Debt Collector Intrum Justitia Pares German Operations

Swedish collection agency and debt buyer Intrum Justitia said today that it has readjusted its resources within its German operations due to poor performance in 2012. The actions will result in a $10.5 million charge to be realized in the fourth quarter of 2012.

Intrum said that it has already reduced its staff by 25 percent in Germany as a result.

The Stockholm-based ARM company blamed lower than expected growth in both its contingency debt collection and debt buying operations for its largest German portfolio for the readjustment. Collection performance was also impacted by “IT platform issues.”

“We have had a disappointing development in Germany during 2012,” saID Lars Wollung, CEO & President of Intrum Justitia. “However, with the activities and cost reductions implemented, I am confident that our German business is well positioned for growth and profitability in the years to come.”

The company noted that Modifications have been implemented to secure a  more efficient IT platform. A new Managing Director, with a solid track record from the credit management industry, also joined the German operation in December.

Inturm is one of the largest ARM firms in Europe, employing 3,300 workers in 20 countries. The company reported total group revenues of nearly $600 million in 2011.