London Scottish Bank's administrators, Ernst & Young, are going to sell off the bank's debt collection division
Robinson Way. It is, as yet, unclear what the selling price of the division will be.
Yesterday, we reported that the London Scottish Bank had been stopped from accepting deposits by regulators after a regulatory shortfall in capital. The bank called in Ernst & Young after failing to secure a buyer for the business.
It has been revealed that the administrators are preparing to auction Robinson Way in the coming weeks. Interested bidders include numerous private equity funds and trade buyers.
The London Scottish Bank's other divisions include Morses Club, which provides unsecured loans from £100 to £1000, as well as a high interest bond for investments of between £2000 and £250,000 over a period between one to five years.
Robinson Way, set up in 1974, provides debt collection, debt purchase, litigation and specialist field services. A founder member of the Credit Services Association, Robinson has 250 employees.
Robinson Way made a profit of £6.3 million in the six months to October 30.
