Wonga – Britain’s biggest payday lender – has collapsed, putting around 500 jobs at risk.
The firm, who were shirt sponsors of Newcastle United for four seasons, initially enjoyed rapid growth by offering short-term, high-interest loans; often to troubled borrowers.
But they fell into difficulty in recent years after scrutiny of its practices led to a cap on interest on payday loans
The announcement comes just weeks after they received a £10 million cash injection from investors.
In a statement, Wonga said:
“A decision has been taken to place Wonga Group Limited, WDFC UK Limited, Wonga Worldwide Limited and WDFC Services Limited into administration.
“The Boards of these entities have assessed all options regarding the future of the Group and have concluded that it is appropriate to place the businesses into administration.”