Amigo founder puts company up for sale

Mon, 27 Jan 2020 | BUSINESS SALE



Amigo founder James Benamor has put the subprime lender up for sale, with the company announcing Benamor is looking for a buyer for his 60.6 per cent stake.

Amigo provides loans to individuals who have poor credit ratings but can provide a guarantor for the loan who agrees to be responsible should they fail to make repayments.

However, it is being pressurised by the Financial Conduct Authority’s attempts to crackdown on the guarantor-lending industry, over concerns that guarantors often don't understand the risk they are taking.

Benamor founded the firm in 2005 and ran it for a decade, he now controls Amigo through holding vehicle Richmond Group, which is Amigo’s biggest investor with a 60.6 per cent stake.

Benamor returned to the Amigo boardroom as a non-independent and non-executive director in December, following the company’s chief executive and chairman stepping down.

In August, Amigo said it needed to overhaul its business model amid warnings of slower annual growth. On Monday, the company said it was still facing a challenging environment but that its loan book growth and impairments for the nine-months to December 31, 2019 remained within guidance.

Amigo has appointed RBC Capital Markets to lead a strategy review of the company, this could potentially lead to a sale of all or parts of the business.

However, it has said it is yet to receive any approaches and has compiled a list of alternatives to a sale of the whole business, including a sale of the UK business, the sale of certain loan books and a reorganization of the group’s entities, among others.

“We continually look to enhance our processes and are monitoring developments with a view to assessing the long-term impact on the company,” the company said.


Share this article



Latest Businesses for Sale

Professional Healthcare Recruitment Company
Midlands, UK Wide

Works with a wide range of clients, including independents and large national chains, with an exceptional reputation as a reliable service provider. Focuses on a number of niche areas within the healthcare industry, establishing itself as a market-le...

Asking Price: Offers Invited
Turnover: £1,601,955

LEASEHOLD


Licensed Law Firm
Surrey, South East, UK

CLC licensed law firm based in Surrey looking for a sale due to retirement. Owner happy to stay on in short term for smooth handover. Work types are Residential Conveyancing, Wills & Probate and some Commercial Property matters. Offers invited.

Asking Price: Offers Invited
Turnover: £400,000

General Law Practice
Hertfordshire, South East, UK

Small general practice for sale based in Hertfordshire specialising in Commercial & Residential Conveyancing and Private Client with a small amount of litigation. SRA regulated, limited company structure. Looking to either sell the company or alterna...

Asking Price: Offers Invited
Turnover: £400,000


View more businesses for sale

News Search

Latest News

 
14
 
Jul
 

Huddersfield retail park acquired out of administration | COMMERCIAL PROPERTY

Huddersfield’s Gallagher Retail Park has been acquired...

 
14
 
Jul
 

Directors of distressed companies get more breathing space | BUSINESS NEWS

The temporary suspension of wrongful trading provisions intr...

 
13
 
Jul
 

Yorkshire retailer Peter Jones enters administration | ADMINISTRATION

Well-known Wakefield-based retailer Peter Jones has entered ...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
09
 
Jun
 

Subprime lender Amigo abandons sale after buyer walks away | BUSINESS SALE

UK subprime lender Amigo Loans has abandoned its plans for a...

 
18
 
Feb
 

Subprime lender Amigo launches sale process | BUSINESS SALE

UK subprime lender Amigo has announced that it is in talks w...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources