Rent-to-own firm Brighthouse is on the brink of collapse with more than 2,400 jobs at risk amid coronavirus crisis
- Thousands of jobs at risk as Brighthouse struggles under coronavirus lockdown
- Firm, which has 240 stores across Britain, could hire administrator by Monday
- It would join Flybe and Laura Ashley as companies buckling under pressure
- Coronavirus symptoms: what are they and should you see a doctor?
More than 2,400 jobs are at risk as the coronavirus pandemic puts rent-to-own firm Brighthouse on the brink of collapse.
BrightHouse, which trades from 240 stores across Britain, is likely to appoint accountancy firm Grant Thornton as administrator as early as Monday, Sky News reported.
‘The national response to the COVID-19 pandemic has required us to prioritise the health and wellbeing of our staff and customers, in particular by closing all stores in the last few days,’ a spokesman for the firm said.
Brighthouse trades from 240 stores nationwide, but as the coronavirus-lockdown puts pressure on Britain’s high streets, the rent-to-own firm is on the brink of collapse
‘While we continue to actively engage with our stakeholders, these developments have made the task of finding a future for BrightHouse more challenging.’
The firm offers televisions, washing machines and other household goods to people on ‘rent-to-own’ credit, a model that attracted criticism for slapping high rates of interest on purchases prompting a regulatory clampdown on the sector last year.
Grant Thornton declined to comment.
Rent-to-own firms were put under financial pressure before the outbreak, after regulators capped prices in the sector last April.
The firm shut 30 stores and cut 350 jobs in February last year, a few months after the cap was first announced.
Last week fashion giant Laura Ashley filed for administration, while Flybe was one of the first companies to collapse because of the global pandemic.