The issue of short-term lending and its connection to the post-Crisis era has been discussed on a number of occasions here in Financial Regulation Matters , most notably here and here . We discussed how the growth in this particular market was borne out of a desperation experienced by citizens who were, for the most part, struggling to make ends meet. One of the largest players in that field was Wonga, set up in 2006 just before the Crisis hit the Western world. In this post, we will look at Wonga’s recent collapse and discuss what its collapse may mean, both for consumers and the marketplace moreover. In a previous post we discussed how, in June 2017 the Financial Ombudsman revealed that consumer complaints against Wonga and other similar lenders had exploded by 227% . That increased rate of complaints has subsequently been cited as being one of the core reasons behind Wonga’s recent collapse. The Guardian notes how the company ‘ collapsed into administration after it was bro...

Over the past few weeks, a number of the country’s leading casual restaurants have found themselves in financial difficulties, with a number collapsing altogether. With news recently that nearly 35 of the top 100 British restaurant groups are operating at a loss , this post will look at some of the reasons why this may be and the potential effect of such a damaging phase for a sector that employs so many people in the U.K. However, on the back of that review, the question will be raised as to what legal options are available to these companies as they suffer financial difficulties, and also whether they may be effective in allowing the sector to survive the current crisis. The leading story in this particular field is that of the troubles being experienced by celebrity Chef Jamie Oliver. Oliver, and his Jamie’s Italian group have hit the headlines more than most in recent months, with stories revolving around the development that Oliver had to pump in £3 million of his own mone...

In this very short post, the focus will be on the difficulties being faced at the moment by the famous ‘Toys-R-Us’ brand, founded almost 70 years ago in the United States. Founded in 1948 by Charles Lazarus , the company would go on to be a huge success, essentially coming to be synonymous with the children’s toys market; the company has since gone on to establish itself in countries all around the world, and today’s post will focus on its U.K. operations, which began in 1985 , and the troubles facing the company as a whole. It was reported earlier today that rather than demonstrate the continuance of this success, the British arm of the Toys R Us Company is facing the prospect of going into administration – the process whereby an administrator takes charge and attempts to rescue the company as a going concern. This negative development will, according to reports, put more than 3,000 British jobs at risk , with the prospect of administration drawing ever closer after an attempt...