Amigo chief executive resigns

(Sharecast News) - The chief executive of Amigo Holdings has resigned, it was announced on Tuesday, as the mid-cost lender continued to be wound down. Danny Malone was named chief executive last autumn, shortly before the Financial Conduct Authority confirmed the embattled firm could resume lending.

Following lengthy negotiations about its future, the regulator had backed a rescue plan under which Amigo agreed to pay compensation to creditors and to resume lending by February 2023.

But the deal was conditional on a capital raise, and with Amigo unable to garner enough interest from potential investors, in March it announced the business would be wound down.

Malone, who will serve out his six-month notice period, said he had joined Amigo because he could see the potential of its new proposition. Originally a subprime guarantor lender, following claims of mis-selling and a difficult pandemic, Amigo had refocused on mid-cost loans to people typically excluded from mainstream finance.

He continued: "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."

Malone, who co-founded Everyday Loans, joined Amigo as interim chief financial officer in February 2022. He joined the board and became finance chief in June, before taking up the role of chief executive in September.