Troubled business made loss of £34m last year
A Dorset based loans company which is in the process of being wound down made a loss of £34m last year.
Amigo Holdings specialises in providing loans to people who would not normally be able to access finance.
Earlier this year the Bournemouth business announced it was entering into an orderly wind down when it failed to access extra funding.
Amigo Holdings had been the subject of a number of inquiries after it was accused of mis-selling products to its customers.
Chief executive Danny Malone was bought in to try and rescue the business.
He said: “These results come at a very sad time for Amigo. Despite the hard work and dedication of all of Amigo’s employees, economic and market conditions made it impossible for the company to raise the capital required to continue lending.
“Our priority now is to progress the orderly wind down of the business, ensuring we are able to maximise payments to redress creditors, whilst continuing to provide the best level of service possible to our customers and support for our staff. I am grateful to our employees who are giving their all at a very difficult time.”
He added: “I regret that market conditions caused us to be unable to move forward with the new Amigo business. As we announced in June, while we have been engaging with potential providers of investment to allow the business to restart, the Board of Amigo considers the likelihood of success to be very low.
“I have been proud to both serve as Amigo’s chief executive and of the many hurdles we overcame despite the final outcome.
“Whilst there is still work ahead as we complete the wind down, I would like to take this opportunity to thank all our people for their continuing dedication and, as they prepare to leave the business in the months ahead, wish them well for the future.”
The firm said a number of roles will be required as it continues to service existing customers and manage the wind down. Consultation for the redundancy of all roles is ongoing.
The wind down will leave no value for shareholders.
Danny Malone has resigned from his role as chief executive and director, subject to a six-month notice period, ending in November.
