BrightHouse collapses, 2,400 jobs at risk

BrightHouse has collapsed into administration, placing 2,400 jobs “at serious risk”.

The rent-to-own home furnishings brand has now called in Grant Thornton as administrators following a period of poor trading amid the ongoing coronavirus pandemic. 

According to the BBC, Julie Palmer, from corporate recovery business Begbies Traynor, said that the impact of coronavirus was the “final nail in the coffin for BrightHouse”.

Rumour of the collapse was initially announced last Friday, after the BBC claimed the retailer had seen an increase in compensation claims from customers who could no longer make payments amid the ongoing pandemic. 

BrightHouse, which currently trades from 240 UK sites, operates through customers making monthly payments for household appliances until they have paid off in full. 

However, the majority of these customers are on low incomes and “find it difficult” to access credit from mainstream lenders to pay for the appliances in question, says the BBC. 

Administrators have now advised customers to continue making payments as usual, though failure to make these payments can still lead to extra charges and poor credit. 

All rent-to-own agreements and cash loans provided by BrightHouse will be stopped, though servicing, warranties and insurance claims will continue to be provided.

Insolvency practitioners Chris Laverty, Andrew Charters and Sarah O’Toole have now been appointed as joint administrators of the group.