Further to the announcement made on 17 July 2026, Hodge Bank today announces that it has acquired the business and certain assets of Blue Motor Finance Limited (“Blue Motor Finance” or “the Company”) through a pre-pack Administration process. Simon Edel, Alan Hudson and Richard Barker of EY Parthenon (“the Joint Administrators”) were appointed as Joint Administrators of the Company today, and the sale was completed immediately upon their appointment.
This means that the brand, operations and staff will transfer to Hodge MF Limited and will allow for continuity of operations for customers, employees and partners while strengthening the Hodge Bank group. Existing liabilities, including any relating to the motor finance redress scheme, of Blue Motor Finance Limited will not transfer and will be dealt with by the Administrators.
The transaction will increase the value available to be distributed to creditors, including motor finance redress claimants and absent this outcome, Blue Motor Finance Limited would have entered into Liquidation, resulting in significantly lower compensation for motor finance redress claimants.
Blue Motor Finance is a provider of loans to consumers acquiring used vehicles through a network of dealers and broker partners. Given its existing commercial relationship with Blue Motor Finance, which commenced in 2023, under which Hodge Bank provides funding to the Company via a forward flow agreement, Hodge Bank was well placed to step in at pace and support a stable outcome for the business and its stakeholders. This also provides a stable platform for continued lending and support to the UK motor finance market.
Blue Motor Finance customers can continue to access their accounts and services through existing channels, and need take no action as a result of this transaction. Dealer and broker partners will also see no interruption to funding or day-to-day operations. The brand will be discontinued following a transitional period, with the expectation that this will be within six months.
Hodge Bank will now focus on ensuring a smooth transition and maintaining high standards of service for customers and partners.
Richard Saulet, CEO of Hodge Bank, said:
“This transaction provides a pragmatic and responsible solution to a complex situation. By acquiring the business through the pre-pack process, we have been able to secure continuity of operations, protect jobs and ensure that customers continue to be supported.
“Importantly, this structure also maximises the value available to be distributed to redress claimants, delivering a better outcome than would otherwise have been possible.
“Our immediate focus is on ensuring a smooth transition and maintaining high standards of service for customers and partners, while providing stability for employees. Blue Motor Finance (operated by Hodge MF) remains open for new business, and we look forward to continuing to support its dealer and broker network. We are committed to working constructively with all stakeholders as the business moves forward under new ownership.”
Simon Edel, a partner at EY Parthenon and one of the Joint Administrators, said: “We are pleased to have completed the sale of the Blue Motor Finance business, which will protect all employee jobs, ensure continuity for more than 100,000 existing customers who have existing loans with the company and will maximise the return to unsecured creditors (including redress creditors).
The business will continue to operate as a going concern under new ownership, providing used car finance to consumers across the credit spectrum, including many who are unable to access mainstream lending options, with no expected change in service for existing customers.”
Hodge Bank was advised by Fenchurch Advisory Partners, Burges Salmon, and Deloitte on the transaction.
Blue Motor Finance was advised by EY Parthenon and Slaughter & May.
For Hodge Bank / Hodge MF Limited media enquiries:
H/Advisors UK
Neil Bennett – 07900 000777 / [email protected]
Jonathan Cook – 07730 777865 / [email protected]