Amigo says it is running out of survival options

CHARLIE CONCHIE

BELEAGUERED lender Amigo said its survival options had “diminished significantly” yesterday as it updated on efforts to raise £45m in a bruising meeting with shareholders.

Amigo has been hunting for investors to underwrite an equity raise as part of its plans to restart its full operations next year.

However, in its annual general meeting yesterday, bosses said after approaching 200 potential backers it had failed to secure the required cash, and warned that a “fallback solution” of an orderly wind-down of the business was the only viable alternative if investors failed to materialise.

environment”.

The listed restaurant group, which also owns Frankie & Benny’s, said that it will look to convert some underperforming sites to Wagamamas.

Andy Hornby, chief executive of TRG, told City A.M that the decision to close the underperforming sites was a “pragmatic” decision.

TRG shares closed down 15 per cent.

Raising the cash was “achievable”, they added, but the “funding gap is large and options to fill that gap have diminished significantly”.

Shares closed down 26 per cent.

The sub-prime lender has been on a survival footing since it was suspended from lending by the FCA after failing to conduct proper affordability checks and for dishing out high-interest loans to borrowers with shaky credit histories.