Incoming Amigo boss quits before starting after board dispute
The incoming chief executive of troubled subprime lender Amigo Loans today quit the company before he had even taken up the position.
Glen Crawford, a director and chief executive designate today left the business after a “divergence of views with the majority of the board”.
Crawford was chief executive of the business from 2016 until last year and rejoined the company this month pending FCA approval to take up his full duties as chief executive.
Crawford had previously threatened to quit if founder James Benamor rejoined the company in a managerial position, as he has been pushing for in recent weeks.
Next week shareholders will vote on resolutions at Amigo’s AGM which would confirm Benamor’s return as a director.
The board has advised shareholders to vote against the resolutions, which would also remove finance director Nayan Kisnadwala and board member Roger Lovering.
However, the shock decision suggested that there has been some falling out at the group since the date for the AGM was set for 29 September.
In the notice of the meeting, which was requisitioned by Benamor-owned Richmond Group, a shareholder with 9.99 per cent of the firm’s stock, the board had stressed their support for Crawford.
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“In particular it is critical that Shareholders note that the CEO designate, Glen Crawford, will resign immediately if the resolution to appoint Mr. Benamor as a director of Amigo Holdings PLC is passed”, it said.
“Glen Crawford and the board have already agreed that Glen Crawford’s resignation will automatically take effect in such circumstances.
“The board regards Glen Crawford as the best person to lead the company and his resignation would be materially detrimental to the interests of the company and its shareholders.”
The company said that Gary Jennison, who joined Amigo as a director on 10 August, would become chief executive instead.
Jennison, who was previously chief executive of payments processor Payzone UK and Secure Trust bank, has “extensive experience of several turnaround situations”, the firm said.
Guarantor lender Amigo has been swamped by thousands of complaints from customers who say they should never have been granted a loan.
Amigo is being investigated by the Financial Conduct Authority (FCA) over how it assesses the creditworthiness of customers, and has stopped almost all lending amid the coronavirus pandemic and the probe.