UK rent-to-own firm Brighthouse falls on coronavirus shutdown

UK Rent-to-own firm BrightHouse has been placed in administration and has stopped all new lending, putting more than 2,400 jobs at risk. The firm is the latest to collapse as Britain's coronavirus-driven lockdown piles pressure on high street businesses, with restaurant chain Carluccio's also entering administration on Monday.

Accountancy firm Grant Thornton said in a statement that it had been appointed administrators of Caversham Finance Limited, which trades as BrightHouse in Britain. BrightHouse traded from 240 stores, offering televisions, washing machines and other household goods to people on "rent-to-own" credit.

The rent-to-own model attracted criticism for slapping high rates of interest on purchases, prompting a regulatory clampdown on the sector last year which capped prices and contributed to Brighthouse having to shut 30 stores and cut 350 jobs. Grant Thornton said Brighthouse would offer no new rent-to-own or cash loan lending.

It said all outstanding lending remained subject to terms agreed and advised customers to continue making repayments. BrightHouse said on Friday that the COVID-19 pandemic had put its future in doubt by forcing it to close all its stores.