0 £0.00
This item was added to your basket
Search

Dear visitor,
You are viewing 1 of your 1 free articles


We’ve made wider, important changes to our print and online content to enhance the value of exclusive, insightful, discerning content we create every day. Support valuable editorial content by becoming a member of our Credit Club - register for free or choose a paid plan.

Register now or Login

BrightHouse to close 30 stores and cut jobs

The UK’s biggest rent-to-own provider, BrightHouse, is to close 30 stores across the country, at a cost of 350 jobs.

The closures, which represent 10 percent of BrightHouse’s estate, will be conducted over the next two months and come amid difficult trading conditions on the high street.

 

A BrightHouse spokesperson said: “We have taken the very difficult decision to close 30 stores in the next two months. All employees affected by our proposals have been informed. We are working to redeploy as many people as possible into alternative roles, but redundancies will be inevitable.

 

“We will be speaking to all customers affected by the store closures and either transferring them to another local store or serving them online. We’re also introducing PayPoint, allowing customers to pay BrightHouse in cash at 28,000 locations across the UK.”

 

In its most recent results for the six months to September 29, BrightHouse reported a rise in pre-tax losses to £22.1m from £19.9m in the comparable period.

 

Meanwhile, the Financial Conduct Authority (FCA) last year announced plans to cap the amount of interest that rent-to-own retailers charge customers.

 

Rent-to-own customers make monthly payments on a product such as a cooker or a television until they have paid in full.

 

BrightHouse charges an interest rate of 69.9 percent to its customers.

 

From April 1, 2019, the price cap imposed by the FCA on rent-to-own products will limit both the cost of the product and the charge for credit.

 

Under the proposed cap, credit charges cannot be more than the cost of the product. In addition, rent-to-own firms would need to benchmark the cost of products against the prices charged by three other retailers.

 

The rules would also prevent firms increasing their prices for insurance premiums (for example, theft and accidental damage cover), extended warranties or arrears charges in order to recoup lost revenue from the price cap.

 

The stores affected are:

  • Aylesbury
  • Basingstoke
  • Bognor Regis
  • Bromley
  • Cowley
  • Dunstable
  • Eccles
  • Gravesend
  • Haverfordwest
  • High Wycombe
  • Leeds Merrion
  • Macclesfield
  • Maidstone
  • Newark
  • Newport (IOW)
  • Nuneaton
  • Perth
  • Rugby
  • Scarborough
  • Seaham
  • Selby
  • Southport
  • Stafford
  • Stirling
  • Thetford
  • Trowbridge
  • Watford
  • Weymouth
  • Whitehaven
  • Yeovil

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

Experian’s Boost to come to UK after US launch

Experian’s Boost to come to UK after US launch

Universal Credit “pushing tenants into rent arrears”

Universal Credit “pushing tenants into rent arrears”

CMA orders RBS and Santander to fix PPI breaches

CMA orders RBS and Santander to fix PPI breaches

Upcoming events

Credit Strategy
LinkedIn page

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace.
@ Copyright Shard Media Group