Cattles have made it clear that Welcome Car Finance will certainly close. The direct distribution car retailer and subprime vehicle finance specialist will close its doors for business shortly.

The aim of the restructuring in the Cattles group is to conserve cash and up liquidity, a spokesman commented. However, the news will mean hundreds of job losses and a cost of closure estimated at £5 million.

Welcome has been a timebomb, although successfully trading its stock of cars remaining from last year. With no funds to acquire new stock, the business model for the motor finance company would become unviable.

Welcome was considered a serious success in the car finance industry until the economic crisis.