BrightHouse is set to confirm a £220 million financial restructuring deal following reports last month that a consortium of investors could take control in exchange for debt.
According to Sky News, private equity firm Apollo Management will take on nearly half of the embattled rent-to-own retailer’s shares in a debt-for-equity deal.
The deal, which will see BrightHouse’s former owner Vision Capital’s stake reduced to just three per cent, is expected to be announced within days.
For the deal to go ahead it must still secure approval from creditors and the City regulator.
Sources have stated the acceptance threshold may be reduced to 75 per cent.
It has also been reported that the retailer’s chairman and former ITV finance director Henry Staunton is to step down when the deal is completed next year.
This follows recent news that the Queen’s private estate, the Duchy of Lancaster, had indirectly invested in BrightHouse amid the paradise papers scandal.