Advance America to Close 66 Pa. Centers

Advance America Cash Advance Centers Inc., a provider of payday cash advance services, said Tuesday it decided to close all 66 of its remaining centers in Pennsylvania, and expects to record about $1.5 million in associated charges.

Advance America said the decision comes as the company awaits a ruling from the Supreme Court of Pennsylvania on its appeal of a lower court's decision in July. That decision directed the company's subsidiary to suspend its operations and discontinue its "Choice Line of Credit" in Pennsylvania.

Advance America said in September it was closing 31 of its centers in Pennsylvania to control costs. The company closed another center in October.

Advance America explained it had kept 66 centers open, while it explored other options and product lines for meeting customer demand in the state.

However, President and Chief Executive Ken Compton said in a press release, "While we remain hopeful for a favorable outcome on our appeal, the timetable remains uncertain and we have decided that closing our remaining Pennsylvania centers at this time is in the best interest of our stockholders."

The company now expects to record additional charges of about $1.5 million for severance, lease termination, and write-off of the undepreciated costs of fixed assets in these centers.

Previously, Advance America recorded a charge of roughly $6 million for the write-down of related receivables, which included the impaired receivables for the remaining 66 centers.

Shares of Advance America rose 52 cents, or 5.9 percent, to close at $9.38. In after-hours trading, the stock fell 11 cents to $9.27.