AMIGO Loans today admitted that a potential takeover bid has failed, as the chairman quit and the shares slumped.
The subprime lender has been at war with founder James Benamor for some time. He has been trying to oust the board, threatening to sell his 61% stake and walk away if he doesn’t get what he wants.
Today that stake was falling in value apace. The stock fell 23%, 4p, to 13p. The shares were nearer 300p just one year ago.
Amigo said the sales process that began in January have failed, due to the “current market environment”.
It is also facing a £35 million hit following a “significant increase” in customer complaints recently. That amount could turn out to be “materially higher”.
Amigo will not pay a dividend for the year.
The Financial Conduct Authority said last week it had launched an investigation into Amigo's creditworthiness assessment process.
Chairman Stephan Wilcke agreed to stand down late last year. Amigo said today he formally resigned on June 7 and the board will agree a “mutually agreeable termination date”.
Stephan Wilcke said: "I have chosen to resign now to make it crystal clear to everyone that the assertions made by Richmond Group about the motivations of myself and the board as clinging to our seats for our own ends are completely false.”
The Richmond Group is Benamor’s investment vehicle.
He founded the business 15 years ago, floating it in 2018 at a value of £1.3 billion.
