Virgin Group confirms Northern Rock interest
Oct 12 2007 By Andrew Mernin
Sir Richard Branson’s Virgin Group today confirmed interest in a potential rescue of crisis-hit mortgage lender Northern Rock.
Under the proposals, a Virgin-led consortium would inject ``substantial new equity" into Northern Rock, renaming and rebranding the business as Virgin Money.
Virgin said: ``The consortium believes...Northern Rock must seek a complete rebranding to repair its franchise and the confidence of its stakeholders if it wishes to continue as a stand-alone business."
Virgin’s consortium said today that it wished to retain the Newcastle-based lender ``in its entirety" and grow the business rather than seeking a break-up of the group, which employs around 6,000 people.
Sir Richard said: ``I believe that, if we’re successful, we’ll be able to create an exciting new banking alternative for everyone in the UK.
``I and my team have pulled together a heavy-hitting consortium that we believe has not only the knowledge and expertise but the financial clout to make a once-great British institution great again."
The consortium said Northern Rock would fit with the existing Virgin Money business and help the ailing lender build a deposit base to ``drive a more sustainable funding structure".
