(Contributed by Register staff writer Mary Ann Milbourn)

First NLC Financial Services confirmed today that it laid off 49 of 160 workers at its West Coast headquarters in Anaheim this week.

The layoffs were part of 640 jobs cut nationwide on Wednesday by the Boca Raton, Fla. subprime lender, said Andrew Henschel, vice president of corporate governance.

It’s the company’s second round of local layoffs this year. First NLC reported to the state Employment Development Department March 30 that 113 workers in Orange were let go when its office on Lewis Street closed.

Henschel said this week’s layoffs were due in part to difficulties in the subprime mortgage market. He said cuts were also necessary as a part of a recapitalization deal with Sun Capital Partners announced last week.

Sun Capital, a private investment firm, agreed to buy 80 percent of the business for $60 million from investment bank Friedman, Billings, Ramsey Group, Inc. Friedman, Billings retained an interest in First NLC and said it would put an additional $15 million into the company.

Posted in: Subprime news |

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