Sheffield bank workers among 500 saved after merger plans are shelved

Virgin Money has halted plans to merge with Clydesdale and Yorkshire Bank due to coronavirus.

Some 52 branches were due to close - including the landmark Yorkshire Bank on Fargate in Sheffield city centre – under plans to rebrand the business to Virgin Money by October. Some 500 full time equivalent jobs were due to be axed.

Lucy Dimes, group business transformation officer at Virgin Money UK, said: “Our primary focus is on supporting our customers and protecting our colleagues during this challenging time.

“As a result of the impact of coronavirus in the UK, we have decided not to proceed with the integration changes we announced in February.”

Yorkshire Bank on Fargate stands opposite a Virgin Money Lounge. The bank was due to close in August under plans to ‘consolidate’ branches within half-a-mile of another by closing one.

Under the plans, Yorkshire Bank branches in Chapeltown and Wombwell, Barnsley, were due to close.

The bank also has branches in Hillsborough, Woodseats, Meadowhall, Mexborough, Rotherham, Doncaster and Chesterfield which are unaffected.

Clydesdale and Yorkshire Bank paid £1.7 billion for Virgin Money in 2018. The deal completed in October last year and plans were announced to rename all branches nationally Virgin Money, which was deemed the stronger brand.

Yorkshire Bank, which traces its roots back to 1859, was set to disappear.

In January, Brendan Brien, Yorkshire Bank regional manager, said he did not expect any redundancies in the consolidation of the two Fargate locations.