its European key staff have added fuel to the fire regarding the
increasing financial difficulties being faced by the New York-based
firm.
CIT’s chief operating officer in Europe, John McKenna, left the
company at the end of November.
Go deeper with GlobalData
The company said that he was leaving for personal reasons, “as
he wishes to relocate back to the UK”, although no replacement has
been found yet. But it said it was actively recruiting for the
position, as it was a key role within its European team.
Michael Vander, who works for CIT and is sales manager for Dell
FS across continental Europe, is also understood to be leaving,
although the company declined to comment on this.
Terry Kelleher, the co-president of CIT Global Vendor Finance,
left just a few months earlier to “pursue outside interests”.
Although the official line within the company is that these
departures are not related to the difficulties it is encountering,
the company is struggling to finance operations and has been hard
hit by the credit crunch.
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By GlobalDataLast month it reported a Q308 net loss from continuing
operations of $354.8 million (€276 million) within its vendor
finance business, fuelling speculation that Siemens Financial
Services could step in to acquire the business unit. But the
company has denied further speculation that it is withdrawing from
the broker market and assured it was committed to maintaining
significant cash balances.
CIT has recently applied to become a bank in a move which would
make it eligible for funding from the US government’s $700 billion
bank rescue package.
The company said that the move was intended to provide more
opportunities for funding and greater access to capital, which
would permit it “to continue its current business activities and
increase its deposit-taking capabilities”.
CIT chairman Jeffrey Peek said: “As a bank holding company, CIT
would be well-positioned to ensure the continued flow of liquidity
directly to main street businesses and entrepreneurs.”
He claimed that CIT repre-sented “one of the few significant
sources of liquidity for small and mid-sized businesses who are
struggling to survive in today’s challenging environment.”
Microsoft, one of the company’s main customers, said it was
keeping its relationship with CIT. Brian Madison, general manager
at Microsoft Financing, said: “Microsoft Financing has no changes
to report. CIT continues to do a good job servicing Microsoft
Financing loans.”
Peter Vandendordel is understood to have stepped down as head of
Dell Financial Services in Europe earlier this year.
Antonio Fabrizio
