Cheltenham & Gloucester

Cheltenham & Gloucester, commonly known as C&G, was a British financial-services brand specialising in residential mortgages and savings. Its origins lay in the Cheltenham and Gloucestershire Permanent Mutual Benefit Building and Investment Association, whose inaugural meeting took place at the Belle Vue Hotel in Cheltenham on 7 August 1850. The organisation was established within the nineteenth-century building-society tradition, using mutual savings to support home ownership and provide financial stability to members. James Downing of Cheltenham was its first president and promoted the idea that citizens had a responsibility to help others achieve secure housing. The society initially operated from Cheltenham and later developed a wider branch network. Its first Gloucester branch opened in 1896, and the organisation continued expanding across the United Kingdom during the twentieth century. It opened its 100th branch in Pershore in 1979. During the consolidation of the building-society sector in the 1980s and early 1990s, C&G absorbed or merged with a number of smaller societies, including Cotswold, Waltham Abbey, Colchester, London Permanent, Cardiff, Essex Equitable, Bolton, Bury St Edmunds, Bedford, Guardian, Peckham, Walthamstow, Portsmouth, Bedford Crown, Mid-Sussex and Heart of England. These transactions materially broadened its geographical reach and customer base. C&G moved its headquarters from Cheltenham House in central Cheltenham to Barnwood in 1989. Cheltenham House retained a connection with the society through Barbara Hepworth's sculpture Theme and Variations, commissioned by the building society and subsequently displayed at the former headquarters. C&G also maintained its own staff association, which later became associated with wider trade-union structures through Amicus and, subsequently, Unite. The organisation demutualised and converted from a building society into a bank in 1995. The conversion generated a windfall payment for eligible members, and Lloyds Bank acquired C&G later that year. The brand remained focused on mortgages and savings within the Lloyds group. In 2007 it underwent a restructuring that closed 31 of its 195 branches and eliminated 315 jobs. A further transformation followed the financial crisis and the European Commission's competition-related requirements concerning Lloyds Banking Group. In 2009 Lloyds announced plans to close C&G's remaining branch network, while retaining the name for mortgage and savings products. Customers were expected to use Lloyds TSB branches for face-to-face servicing, although Lloyds later said it would review the closure decision. The branch network subsequently became part of Project Verde, the divestment programme that led to the creation of TSB. In 2013 former C&G branches were transferred to the newly established TSB Bank. C&G consequently ceased operating branches and was closed to new business. Existing mortgage liabilities continued to be administered under the C&G name for a period, while savings arrangements were held through a Lloyds Bank trading division. By April 2017, remaining mortgage administration had been transferred to Lloyds Bank and rebranded. C&G therefore survives primarily as a historical brand and as part of the corporate and legal history of Lloyds Banking Group's mortgage operations rather than as an active customer-facing bank.

Cheltenham & Gloucester traces its history to the Cheltenham and Gloucestershire Permanent Mutual Benefit Building and Investment Association, founded at a meeting held at the Belle Vue Hotel in Cheltenham on 7 August 1850. The society was formed as a mutual institution intended to help members save and obtain housing finance. James Downing, its first president, linked the organisation's purpose to the civic responsibility of helping people achieve stability through home ownership. Although its social purpose was prominent, the society was managed conservatively; by the time of Downing's death in 1868, it reportedly had annual income of £37,000. The institution began in Cheltenham and expanded gradually. It opened its first Gloucester branch in 1896, then spent much of the twentieth century building a national presence. Its 100th branch opened in Pershore in 1979. The headquarters were initially located at Cheltenham House in central Cheltenham before moving to Barnwood, Gloucester, in 1989. The former Cheltenham headquarters retained a cultural association with the organisation because of Barbara Hepworth's sculpture Theme and Variations, which the society commissioned and which remained on display there. C&G's greatest period of structural expansion occurred during the consolidation of the British building-society industry. In 1984 it took over the undertakings of Cotswold Building Society. Further transfers and acquisitions followed: Waltham Abbey in 1985; Colchester, London Permanent and Cardiff in 1987; Essex Equitable and Bolton in 1988; Bury St Edmunds in 1989; Bedford, Guardian, Peckham and Walthamstow in 1990; Portsmouth and Bedford Crown in 1991; and Mid-Sussex in 1992. C&G also merged with Heart of England Building Society in 1993. By the mid-1990s, the combined organisation incorporated several of these former societies and had developed a broad branch and mortgage franchise. In 1995 C&G converted from a mutual building society into a bank. The demutualisation produced a windfall payment for qualifying members, reflecting the distribution of part of the society's accumulated value. Lloyds Bank acquired the converted organisation later in 1995, bringing C&G into a larger banking group while preserving its established name and specialist focus. The brand continued to concentrate on mortgage lending and savings rather than operating as a fully diversified high-street bank. The business was restructured in 2007, including the closure of 31 branches from a network of 195 and the loss of 315 jobs. After Lloyds Banking Group received government support during the financial crisis, European Commission competition requirements led to pressure for the disposal of a substantial branch network. Lloyds announced in 2009 that C&G's 164 branches would close, while stating that its mortgage and savings branding would be retained and that customers would be able to access accounts through Lloyds TSB branches. The decision was later reviewed, but the branch network became part of Project Verde, Lloyds' programme for creating a divested retail bank. In 2012 Lloyds announced that C&G branches, together with selected Lloyds TSB branches, were intended to be sold to The Co-operative Bank and rebranded as TSB. The proposed transaction collapsed in 2013 when The Co-operative Bank withdrew, citing the economic downturn and a more demanding regulatory environment. Lloyds nevertheless proceeded with the TSB plan. In September 2013 all former C&G branches moved to TSB Bank. C&G no longer accepted new business, although retained mortgages continued to be administered under the C&G name and savings accounts were held through a Lloyds Bank trading division. Customers could service legacy products through Lloyds channels, including branches, telephone and post. The Treasury Select Committee examined the Verde divestment and the failed Co-operative Bank bid, announcing an inquiry in June 2013 and publishing its final report in October 2014. By April 2017, administration of all remaining C&G mortgages had transferred to Lloyds Bank and the products had been rebranded. C&G's operational life as an independent brand therefore ended through staged integration rather than a single insolvency or liquidation event.

1. 2017Legacy mortgage administration rebranded by Lloyds

   Remaining mortgage administration was transferred to Lloyds Bank and rebranded by April.

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2. 2013Former C&G branches transferred to TSB

   The former C&G branch network became part of the newly established TSB Bank, while C&G was closed to new business.

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3. 2009Project Verde launched

   Lloyds created Project Verde to manage the branch divestment required in the post-bailout regulatory environment.

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4. 2007Branch restructuring

   The brand closed 31 branches from a network of 195 and eliminated 315 jobs.

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5. 1995Demutualised and converted into a bank

   C&G converted from a building society into a bank, with qualifying members receiving a windfall payment.

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6. 1995Acquired by Lloyds Bank

   Lloyds Bank acquired C&G after its conversion to bank status.

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7. 1993Merged with Heart of England Building Society

   The merger further expanded C&G during the period of consolidation among UK building societies.

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8. 1989Headquarters moved to Barnwood

   The headquarters moved from Cheltenham House in central Cheltenham to Barnwood in Gloucester.

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9. 1984Cotswold Building Society transferred its undertakings

   C&G began a major sequence of building-society consolidations by taking over Cotswold Building Society.

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10. 1979100th branch opened

    The society opened its 100th branch in Pershore, reflecting its transition from a local institution to a national network.

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11. 1896First Gloucester branch opens

    C&G expanded beyond Cheltenham by opening its first Gloucester branch.

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12. 1850Mutual building society established

    The organisation that became Cheltenham & Gloucester held its inaugural meeting at the Belle Vue Hotel in Cheltenham on 7 August.

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A UK-focused building-society and later bank brand centred on residential mortgage lending and savings, with a broad branch network before its integration into Lloyds Banking Group and subsequent withdrawal from new business.

• Residential mortgagesMortgage lending

  Mortgages were C&G's principal financial product and remained central after the organisation became part of Lloyds. The brand provided residential home-finance products through its branch and banking operations. After the branch network was transferred to TSB in 2013, retained C&G mortgage accounts continued to be administered under the legacy name for a period before administration moved to Lloyds Bank and the products were rebranded in 2017.

• Savings accountsRetail savings

  C&G offered savings products rooted in its building-society heritage. Savings remained one of the brand's two principal areas alongside mortgages after its acquisition by Lloyds. Following the transfer of the branch network, retained savings accounts were held through C&G Savings, a trading division of Lloyds Bank, and could be serviced through Lloyds channels.

• 2017Completion of legacy mortgage integrationStrategy

  C&G had no branches and no longer originated new business after the TSB transfer.

  What changed. Lloyds Bank transferred and rebranded the remaining C&G mortgage administration by April.

  Aftermath. C&G ceased to function as an active customer-facing mortgage brand.

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• 2013Transfer of branches to TSB and closure to new businessStrategy

  Following the collapse of the proposed Co-operative Bank transaction, Lloyds proceeded with the creation and launch of TSB.

  What changed. All former C&G branches were transferred to TSB Bank in September, and C&G stopped accepting new business.

  Aftermath. Legacy mortgage and savings products continued to be serviced through Lloyds-related arrangements until their eventual transfer and rebranding.

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• 2012Proposed transfer of C&G branches to The Co-operative BankM&A

  Lloyds sought to complete the branch divestment required under Project Verde.

  What changed. Lloyds announced that C&G branches, together with selected Lloyds TSB branches, would be sold to The Co-operative Bank and rebranded as TSB.

  Aftermath. The Co-operative Bank withdrew from the proposed acquisition in 2013, but Lloyds continued with the TSB rebranding and branch transfer.

  • The Co-operative Bank — The bank ultimately abandoned the proposed acquisition, citing the economic downturn and a more demanding regulatory environment.
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• 2009Planned closure of the C&G branch networkStrategy

  Lloyds Banking Group faced requirements to divest branches following government support and European Commission competition concerns.

  What changed. Lloyds announced plans to close C&G's 164 branches while retaining the C&G name for mortgages and savings and allowing customers to use Lloyds TSB branches.

  Aftermath. The decision was reviewed and the branches later became part of the Project Verde divestment and TSB creation process.

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• 1995Demutualisation and bank conversionStrategy

  C&G operated as a mutual building society before converting to bank status during a period when several UK building societies were changing ownership structures.

  What changed. The society demutualised, converted into a bank and issued a windfall payment to qualifying members.

  Aftermath. Lloyds Bank acquired the converted bank later in 1995, and C&G continued as a mortgage-and-savings brand within the Lloyds group.

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• 2017Remaining C&G mortgage administration transferred to Lloyds Bank

  By April, remaining mortgage administration had been moved to Lloyds Bank and rebranded, completing the practical withdrawal of C&G as a standalone customer-facing brand.

  Product generation
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• 2013Co-operative Bank withdraws from proposed Project Verde acquisition

  The Co-operative Bank abandoned its proposed acquisition of C&G branches and other Lloyds branches, citing the economic environment and a tougher regulatory framework. Lloyds confirmed that the planned TSB rebranding would continue.

  M&A
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• 2013Former C&G branches transfer to TSB

  In September, all former C&G branches were transferred to the newly established TSB Bank as part of Lloyds Banking Group's business divestment. C&G ceased branch operations and was closed to new business.

  M&AOther
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• 2013Treasury Select Committee investigates Project Verde

  The UK Treasury Select Committee announced an inquiry into the required Lloyds divestment and the failed Co-operative Bank bid. Its final report was published in 2014.

  RegulationM&AOther
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• 2009Lloyds announces planned closure of Cheltenham & Gloucester branches

  Lloyds Banking Group reported plans to close C&G's 164 branches in November, with an estimated 1,660 jobs affected. Lloyds said the C&G name would remain for mortgages and savings and that customers could use Lloyds TSB branches.

  Leadership change
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• 2009Lloyds reviews its decision on the C&G branch closures

  Lloyds subsequently announced that it would review the previously stated decision to close the Cheltenham & Gloucester branch network.

  Other
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• 2009Project Verde creates a route for C&G branch divestment

  Lloyds Banking Group established Project Verde in the context of European Commission requirements for branch divestment following government support for the group.

  Regulation
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• 2007Cheltenham & Gloucester restructures branch network

  C&G announced a restructuring that closed 31 of its 195 branches and resulted in the loss of 315 jobs.

  Other
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1. Cheltenham & Gloucester