Finance company Thorn Group has launched a strategic review of the business, as it wrestles with problems on a number of fronts, including heavy write-offs, restrictions on the use of its corporate loan facility and a class action scheduled for court in October.The company revised its earnings guidance, saying it expects to report a loss of A$8 million for the year ended March 31 (previous guidance was for a loss of $6 million).In a statement to the ASX yesterday, the company said: "The board believes it is an appropriate juncture to review the company's business to protect and maximise shareholder value. The review will encompass strategic options, alternative ownership considerations, operational practices, procedures and business profitability."The revised earnings guidance is a result of increased arrears and write-offs in the consumer lending business."These results will be further subject to a review of asset values for impairment," the company said.In January the company reported that a significant equipment lessor in its business finance division had defaulted on its lease payments and was challenging the enforceability of the leases. Total exposure was up to $10.5 million.Its $30 million corporate facility is now subject to a "drawstop", which means that "all new utilisations, other than rollover loans and those accessing the overdraft and set-off components of the facility, require prior lending approval."Last November, the facility, which is with a major bank, was cut from $50 million.