HOUSTON and DALLAS, Feb. 14, 2023 (GLOBE NEWSWIRE) -- Globcash, a leading pawnbroker corporation with over 200 stores in Mexico, Guatemala, and Central America, has announced a joint venture agreement with Sunbelt Pawn Shops, a well-regarded pawn shop based in Houston and Dallas/Fort Worth.
The new 50/50 partnership aims to establish a market leadership position in the Texas pawnbroking industry in the period 2023-2025.
The joint venture will leverage Globcash's extensive experience and successful track record in the pawnbroking industry to enhance Sunbelt's offerings and operations. Anthony Vanegas, CEO of Sunbelt Pawn Shops, and Roberto Aramburo, CEO of Globcash, are to join forces and bring their unique strengths to the partnership.
Sunbelt Pawn Shops, founded in 2006, has built a strong reputation for providing quality merchandise at exceptional value, as well as for their professional, experienced and confidential staff.
“At Sunbelt Pawn, we are sure that our partnership with Globcash will increase our market share in the pawnbroking industry to the Texas market. Together, we are confident in our ability to become market leaders and offer a wide range of financial solutions to our customers,” stated Anthony Vanegas, CEO of Sunbelt Pawn.
The joint venture between Sunbelt and Globcash aims to provide a seamless service to customers in both Mexico and the United States. By sharing customer information, both companies will be able to provide the best possible loan options to customers based on their previous history. The partnership also plans to utilize Sunbelt's online e-commerce platforms in Mexico, allowing customers to access premium products that may not be available in the Mexican market. This will leverage Sunbelt's expertise and the variety of goods offered in the American market to benefit customers in Latin America.
Thanks to Anthony Vanegas' expertise and successful track record in the luxury pawnbroking segment, Sunbelt Pawn Shops brings a level of stability to the partnership that exceeds that of comparable public companies. This stability is reflected in their financial metrics and market penetration capabilities, adding even more strategic value to the partnership. With Sunbelt Pawn Shops' strong track record of generating revenue and a strategic approach to market penetration, we are confident that this joint venture will establish a market leadership position in the Texas pawnbroking industry.
EXPANDED PRESENCE IN THE TEXAS MARKET
The joint venture is also planning to expand their presence in the American market under a unified brand. Both companies will maintain information on their corporate websites, including those of Globcash and Sunbelt, to inform customers of their partnership and associated services. This move is expected to further strengthen their position in the market and provide a wider range of services to customers.
Under the leadership of Roberto Aramburo, who has been the CEO of Globcash since 2013, the company has consistently grown over the past decade and reported revenues of over $33.4 million and an EBITDA of 15.54% in September 2022. The joint venture's vision is to provide quick and easy access to financial solutions to underbanked or credit-challenged customers in Texas and to become the leading provider of non-bank loans in the state. Their mission is to rewrite the narrative of the pawn industry and educate their customers about the benefits of pawnbroking as a vital financial solution.
The companies plan to expand their presence in Texas by opening new stores in the coming years, and to leverage the latest technology to streamline operations and improve customer service. They also plan to focus on sustainability and ethical sourcing to meet the growing demand for environmentally and socially responsible products.
THE QUEST FOR THE HIGH-END MARKET IN TEXAS
From now, Globcash and Sunbelt Pawn Shops will be able to offer luxury products to customers and high-end brands. Vanegas brings a wealth of strategic knowledge and expertise to the partnership, specifically in the luxury pawnbroking segment. He and his team have a successful track record in not just pawning mid-level products, but also luxury items. This gives Globcash a unique ability to tap into a market segment that is currently under-served and offers a wider range of financial solutions to customers.
Furthermore, Sunbelt Pawn Shops' expertise in luxury pawnbroking will allow the partnership to expand its presence in the high-end market, providing a unique and valuable service to customers. The partnership will also be able to leverage Sunbelt's online e-commerce platforms in Mexico, providing customers with access to premium products that may not be available in the Mexican market.
“Our alliance with Sunbelt, taking into consideration our extensive experience in the pawn industry among the Latino communities, is the right move. We are going to bring a new level of service and innovation to the Texas market.” Roberto Aramburo, CEO of Globcash, added, “We see great potential in the Texas market and are confident that our partnership with Sunbelt Pawn Shops will allow us to tap into that potential and provide valuable pawnshop services solutions to the community.”
SUSTAINABLE ALTERNATIVE TO COMMUNITIES
In addition to providing microloans, Sunbelt Pawn Shops and Globcash aim to offer a sustainable retail alternative to the communities they serve by embracing ethical and sustainable sourcing methods. The partnership also plans to invest in developing a strong technological presence and improve customer service with the use of online valuation tools, digital marketing campaigns, and e-commerce platforms for buying and selling secondhand goods.
The partnership's vision is to be the leading provider of financial solutions to the unbanked and underfinanced in Texas. Its mission is to rewrite the narrative of the pawn industry by providing the best customer service in the industry and giving back to the community through its annual Seguir Adelante Scholarship for local high school students.
The operational and financial plans of the partnership include expanding Sunbelt Pawn Shops' presence in the Texas market, expanding its merchandise offerings, and increasing its financial solutions to the community.
According to the National Pawnbrokers Association (NPA), the pawnbroking industry in the United States is estimated to be worth around $14 billion dollars. The NPA also estimates that there are approximately 12,000 pawnshops in the United States. Pawnbroking is a widely used form of alternative lending, and pawnshops are found in nearly every community across the country. It is an important source of short-term credit for many Americans, particularly those who may not have access to traditional forms of credit.
