BrightHouse collapses amid coronavirus lockdown

BrightHouse collapses amid coronavirus lockdown

The UK’s biggest rent-to-own company, BrightHouse, has collapsed, with Grant Thornton appointed as administrators.

Chris Laverty, Trevor O’Sullivan and Helen Dale have been appointed as joint administrators of the firm. 

BrightHouse, the trading name of Caversham Finance Limited, has a total of 240 shops across the UK and 2,400 employees, whose jobs are now at risk.

The firm has revealed that it had been struggling after a flurry of compensation claims were lodged with the firm, for selling to people who could not repay.

BrightHouse has said that following the appointment of the administrators, the following changes would be implemented: 

  • There will be no new rent-to-own or cash loan lending activity
  • All outstanding rent-to-own and cash loans remain subject to the terms agreed with CFL and customers should continue to make payments in the usual way according to the company’s terms and conditions, all payment channels (except stores) remain open at this point
  • here possible servicing, warranties and insurance claims will continue to be provided by the logistics and engineering business operated by CTL until further notice for essential items and smaller courier deliveries, subject to Government guidelines for COVID-19 and continued review of the appropriateness of this service by the Joint Administrators, considering the safety of BrightHouse employees and customers

Its problems were then made worse by the government’s COVID-19 measures which instructed all non-essential stores to close in order to slow the spread of the virus.

Administrators have said that customers should continue to make monthly payments to BrightHouse in order to keep the household goods they have acquired through the firm.

Grant Thornton administrators will now act as the collecting agent for the store.

Read all of our articles relating to COVID-19 here.

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