Amigo Loans' chief executive resigns

It comes just over a month after the guarantor lender announced it would wind down its operations after struggling to gain the capital it needs to execute its scheme of arrangement. It had hoped to return to the market with two new loan products but failed to raise the finances it needed to execute this plan, and thus entered a wind-down process.  

As part of this, Amigo stopped lending with immediate effect and was entered into an orderly wind-down with this lasting approximately 12 months.  

In its most recent announcement, the firm said Malone will be serving his six-month notice period to ensure the continuation of the solvent and orderly wind down of the business.  

Responding to this news, Malone said: “I joined Amigo last year as I could see the potential of the new proposition, RewardRate, in a market which is crying out for supply. I would like to thank our teams who have shown remarkable resilience and commitment over what has been a very challenging period and to everyone for the culture we have built in such difficult circumstances.  

“Unfortunately, the investment market, particularly into the sector in which Amigo operates, was extremely difficult and we were unable to raise the capital required. As a result, the business is in wind down, which will have progressed enough over the next six months for me to hand to others to complete.” 

Its chairman Jonathan Roe added: "Danny was a tireless leader of the executive team in our search to secure commitments for new financing for Amigo, which unfortunately proved impossible to secure. He was also integral to getting our RewardRate product into the market.   

“As Amigo is now required to wind down under the terms of its scheme of arrangement, Danny’s resignation is another sad day for the group.”