Bibby Financial Services have acquired the client portfolio of Aston Rothbury Factors which apparently comprises just 40 clients and is considerably less than the 109 clients claimed in Business Money earlier this year.
It has been well known for a while that Davenham were in serious trouble and they have been pretending to lend recently rather than actually doing so.
The staff were told to expect a decision on the company’s future by the end of June and that future now seems to be that they are formally ceasing to write new business whilst the company enters “collect out” mode.
Whilst it is possible for them to collect out their loan book in a prudent and orderly manner as claimed by the company, one cannot do that with factoring so I hope that arrangements are in hand to transfer the book to another factoring company causing as little pain as possible in the process.
This is the third factoring company in a very short space of time to crash into the rocks following hard on the heels of Aston Rothbury a few days ago and Challenge a few months ago so let’s hope that this is the end of it now as it doesn’t do the industry any good at all.
Just a couple of hours after blogging that nothing much was happening in the world of factoring I was informed that Aston Rothbury had gone bust just three months after Business Money had said how refreshing it was to see what a change of management had done for the company.
Hopefully the cash flow of the clients will be unaffected as according to representatives of the Administrator, Aston Rothbury will continue to trade and has the continued support of Lloyds TSB.
I always viewed Platinum Funding as one of the factoring bottom feeders who took on cases that everyone else had turned down and then charged them a huge amount in fees for the priviledge so when I was told last week that they had gone into Administration I was partly relieved.
I have just been told that the book of existing clients has been bought by Aston Rothbury and to say that I am dumbfounded would be a great understatement.