2400 jobs at risk as BrightHouse nears collapse

BrightHouse administration collapse CVA
The company was reportedly forced to put administrators on standby
// BrightHouse is edging towards collapse
// Grant Thornton is on standby
// The rent-to-own retailer has recorded a surge in customer compensation claims

BrightHouse is reportedly on the brink of collapse, putting 2400 jobs at risk of redundancy.

The rent-to-own retailer has put Grant Thornton on standby to handle an administration, Sky News reported.

The news came this weekend after the retailer recorded a surge in customer compensation claims.

READ MORE: BrightHouse falls to £16m loss in latest quarter

The retailer was reportedly forced to put administrators on standby, with insolvency likely to take place in weeks.

BrightHouse has said it needed the support of stakeholders in a bid to be “successful” and is currently in active discussions with them.

BrightHouse most recently went through a restructuring back in 2017.

The FCA had called for the retailer to repay nearly 250,000 customers for failing to act as a “responsible lender”.

Advisors including EY and Freshfields Bruckhaus Deringer have in recent months been working along with Grant Thornton to consider different options for BrightHouse.

One of the options being considered is a scheme of arrangement to deal with mis-selling claims.

These claims are costing BrightHouse a reported £1 million each month.

Moreover, on Friday, BrightHouse said it was conducting a strategic review to maximise value for stakeholders.

“We have disclosed a contingent liability with respect to the uncertainty around the future volume of claims and the potential outcome of the test cases under discussion with FOS,” the retailer said.

“The level of redress claims from customers is putting increasing pressure on the available liquidity in the group.”

BrightHouse told employees it was considering selling its logistics and engineering business at the time.

Last month, the retailer fell to a loss of £16 million in its latest financial quarter after being hit by rising compensation claims.

The business’ loss deepened by more than a third from £11,893 million to £16,283 million year-on-year to September 28.

The retailer trades from about 240 stores across the UK.

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  1. I worked for brighthouse 7 year ago I saw this coming can’t understand why the fca didn’t act to its full potential then, when it was the fsa they done nothing as if to turn a blind eye couldn’t believe its took this long.

    • Still less Apr than provident and the entire time your paying for it you can have it repaired or replaced. Worth it for us that can’t afford to buy out right every time something breaks

  2. The trouble with people is they never tell the truth and when the FCA comes along and says oh look you can have money for lying to the staff everyone jumps on the bandwagon but they were quiet happy to have the goods personally I have never had a problem with them I can get things that I can’t afford to buy outright and staff always happy to help

  3. I worked for bright house for 5 years.it was a farce I never read the agreement guide I just sat off camera and when the hmrc came in to audit the staff I was informed to lie about everything…. Just to.many fat cats


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