Rent-to-own home furnishings brand Brighthouse is reportedly set to call in administrators, placing around 2,400 jobs at risk.
According to the BBC, it comes after an increase in compensation claims for selling to people who could not repay due to the coronavirus outbreak.
Brighthouse is thought to be the largest rent-to-own retailer in the UK with around 200,000 customers.
It is also believed that BrightHouse customers will still be required to continue with payments, even if the company goes into administration.
Unless a buyer for the business is found, it is anticipated that around 240 Brighouse stores will be closed.
The comes a day after British fashion brand Jack Wills – which was rescued out of administration by Frasers Group plc in August 2019 – announced the immediate closure of a further 17 stores, bringing the total number of store closures announced over the last week to 22.