A technology-led motor finance firm has been rescued shortly after it appointed administrators.
On Thursday Blue Motor Finance was placed into administration. Simon Edel, Richard Barker and Alan Michael Hudson of Ernst & Young LLP were appointed as joint administrators.
The firm had been running at a loss for a number of years and faced significant compensation liabilities it could not meet, according to the Financial Conduct Authority.
However shortly afterwards it was announced that a pre-pack sale of the business and the majority of its assets to bank Hodge had gone through.
The firm has been led by former 118 118 Money CEO and Sainsbury’s executive Ali Chaudhry for the last two years. He is now listed on LinkedIn as the interim MD of motor at Hodge.
“The business continues to operate under new ownership, trading as Blue Motor Finance. The sale included BMF’s full origination and servicing platform and the TUPE transfer of employees. All existing customers should continue paying their loans as normal. These are unaffected,” read a statement on the firm’s website.
“The joint administrators will shortly email all creditors… the joint administrators expect to provide information to all creditors on the expected future conduct of BMF’s administration in due course.”
Blue Motor Finance prides itself on its heavy investment in technology which it says makes it “uniquely positioned to be agile to business opportunities and changes within the market”.
It writes on its website: “Automated decision-making allows proposals to be allocated accurately to our risk tiers. Quick decisions are enabled through innovative technology with over 80% of application decisions made within 60 seconds.
“Innovation is everything at Blue. We focus on the latest technological advancements and automations, using real time data to drive decisions, simplify processes and creating unique solutions for car finance.”
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