Virgin Money to close seven Scottish branches in 2020 with 500 jobs to go across group

Around 500 jobs are expected to be lost at the Virgin Money group as the business announced further integration plans - with seven Scottish sites to close this year.

The Edinburgh Lounge onSt Andrew Square, which is to merge with theClydesdale Bank onGeorge Street. Picture: Bernhard Krstinn Ingimundarson.

The lender - which said the integration of Clydesdale and Yorkshire Bank and Virgin Money is "progressing well" - noted plans in Scotland to close the seven branches as a result of lower usage and consolidate a further five into another one nearby.

It is closing six Clydesdale branches north of the Border - in Crieff, Dingwall, Dumbarton, Dyce, Edinburgh's Sighthill and Wishaw - and a Virgin Money site in Giffnock.

Branches are to be consolidated in Aberdeen, Dundee, Edinburgh and Glasgow - with a total of ten reducing to five. This includes fusing the Edinburgh Lounge on St Andrew Square and the Clydesdale Bank on George Street.

The brand is also opening a selection of new flagship outposts - such as this one. Picture: contributed.

This is part of 30 branches across the UK being consolidated into nearby locations, all rebranded as Virgin Money stores.

"The stores will begin to close in late May 2020 and it’s the group’s intention to find alternative roles for colleagues either within other stores locally or elsewhere in the group, wherever possible. However, because of these store closures, a number of colleagues will be at risk of redundancy and subject to the group’s redeployment process," the lender said.

It also said the rebranding of the branch network to Virgin Money is under way, with three B stores rebranded in December with the new Virgin Money look and feel. "The rebrand activity will accelerate from April this year, with every branch updated to the new Virgin Money store identity and upgraded so it can support Virgin Money, Clydesdale Bank and Yorkshire Bank customers by October 2020."

"As our customers change the way they want to bank with us, we are evolving the role of our stores - investing in all of the ways that customers are choosing to bank with us, including a reimagined Virgin Money presence on the high street. Following the unveiling of three new Virgin Money stores in December last year, the full rebrand of our national network of 166 stores begins in April and will be completed by September this year.”

CYBG paid £1.7 billion for Virgin Money in 2018 as it tried to get a foothold to challenge the bigger players.

At the time it warned that around 16 per cent of the combined workforce would be cut, losing 1,500 jobs across the group. The roughly 500 full-time equivalent posts that will be cut across the business, including 215 in its branches - are part of this restructuring.

Its announcement came just a day after HSBC said it would be closing 27 of its sites across the country.

Virgin Money is currently looking for a new chairman as City veteran Jim Pettigrew said he would step down from the role in September 2021 after nine years on the board.

The company has around six million customers.