‘£100m’ Robinson Way set to be bought by bosses

ADMINISTRATORS today revealed plans to sell Robinson Way, the profitable debt collection arm of collapsed lender London Scottish Bank to its management.

The terms of the proposed sale to the Salford Quays-based company’s management were not disclosed by administrators Ernst & Young, but a price tag of £100m had been originally sought.

The deal safeguards the future for 250 Robinson Way staff.

Simon Allport, joint administrator, said: “The proposed MBO of Robinson Way, in the current economic climate, represents a good outcome and safeguards the continuity of the business, employment of around 250 people and preserves the value of this business. 

“I would like to thank all the stakeholders involved with this business, including its clients, employees, lenders and suppliers for their continued and ongoing support throughout the sale process.”

Last month the administrators said in a report they had had 10 bids, but none had met their valuation.

The announcement today is surprising given the tone of the administrators’ report which said the offers “did not reflect the true enterprise value of this successful business” and “an immediate sale is not being pursued at this time.”

Despite the demise of its listed parent company, cash generative and highly profitable Robinson Way was never placed into insolvency.