H & R; Block Inc. still is in talks to sell its Irvine-based subprime lending unit but won’t get a deal done this month as earlier hoped because of the sector’s meltdown, the Kansas City-based tax preparer said Friday.
“Recent events in the subprime industry” have delayed a deal, H & R; Block said.
The company didn’t offer a new time frame for a possible sale of Irvine’s Option One Mortgage.
In late February, H & R; Block said it hoped to sell Option One for $1.3 billion in March. Analysts were skeptical of the price and about how quick a deal might come about.
Option One has been a drag on H & R; Block. The company recently said it would delay filing quarterly results amid upheaval in the subprime sector, which are prompting a write down of assets at Option One.
Separately, loan officers at Option One are suing the company and H & R; Block for allegedly using unfair business practices to avoid paying overtime wages.
