2020-04-01 REPIC 468×60 header

Business

Published on March 30th, 2020 | by The GC Team

0

Coronavirus blamed for Brighthouse collapse

The UK’s largest rent-to-own retailer Brighthouse has appointed administrators Grant Thornton after its 240 stores were forced to shut due to the coronavirus.

The company, which has been struggling under financial pressure for some time, employs 2,400 people which, according to reports, have been furloughed by administrators who will take advantage of the Government’s COVID-19 80% pay provision.

Brighthouse shut 30 of its stores – around a tenth of its estate – with the potential loss of 350 jobs in February 2019 following reported half-year losses rising to £22.1 million and shortly before the Financial Conduct Authority confirmed a price cap on rent-to-own firms.

The FCA discovered that, in some cases, rent-to-own customers were paying in total more than four times the retail price of some goods. The cap, which came into force 1st April 2019, would save UK consumers up to £22.7 million a year, the organisation estimated.

Previous work by the FCA had resulted in redress packages worth nearly £16 million in total for around 340,000 consumers of rent-to-own firms BrightHouse, PerfectHome and Buy As You View.

Brighthouse had thrived during the recession and the Government’s austerity measures but late 2017 entered into a £220 million restructuring deal to reduce its external debt. The company had also been under financial pressure from dealing with mis-selling claims.

Tags: , , , , ,


About the Author

Avatar

Get Connected is the top trade journal for the UK electricals industry. Its website is the fastest, most interesting and up to date in the business.



Leave a Reply

Your email address will not be published. Required fields are marked *

16 − 4 =

Back to Top ↑

By clicking "Subscribe", you agree with our terms:
Mud Hut Publishing Ltd will use the information you provide on this form to be in touch with you with relevant news and content. You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us, or by contacting us at info@gcmagazine.co.uk. We will treat your information with respect. For more information please view our privacy policy.
Stay connected with GC’s regular news updates...
Subscribe