Payday lender Wonga has announced it will go into administration with its parent company.
In a statement, the company said that after evaluating all options, the board “concluded that it was appropriate to put the companies under administration.”
It comes hours after Wonga said he would stop accepting new loan applications.
In a statement, he said: “Wonga clients can continue to use Wonga’s services to manage their existing loans, but the UK company will not accept any new loan applications.
“Customers can find more information on the website. “
Grant Thornton is in the process of being appointed administrator.
On Wednesday, Wonga held emergency talks with the Financial Conduct Authority on the impact of its collapse on existing customers.
Investors in Wonga include Balderton Capital, Accel Partners and 83North.
Over the weekend, Wonga said he was “examining all options” just weeks after shareholders injected £ 10million in a bid to prevent it from going bankrupt.
Earlier this month, the lender said its struggles were due to a “significant” industry-wide increase in the number of people making claims over historic loans.
Wonga has faced a barrage of criticism over the high interest she charges on her loans and has been accused of targeting vulnerable people.
In 2014, the company put in place a new management team and wrote off £ 220million in debts belonging to 330,000 clients after admitting to making loans to people who could not afford to repay them.
That same year, the FCA said it would introduce tighter affordability controls for the industry and introduce a cap on the cost of payday loans on the amount borrowed per day.