BrightHouse (Retailer) Cuts Stores and Looks Ahead

BrightHouse, a UK-based retailer, is undergoing significant changes as it cuts back on its store presence. The company has been working to revamp its business strategy, which includes reducing its store count.

This move is part of BrightHouse's efforts to stay competitive in a rapidly changing market. With more and more people shopping online, the retailer is looking to adapt its business model to better meet customer needs.

BrightHouse is not the only retailer to be experiencing difficulties in recent years. Several other high street brands have also struggled to stay afloat, leading to store closures and job losses.

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Rent-to-own firm BrightHouse is shutting down 30 stores, putting 350 jobs at risk.

The company is taking this drastic measure due to a clampdown by regulators on high-cost credit.

BrightHouse has a workforce of 3,000 staff, with around 350 affected by the store closures.

The company is trying to redeploy staff into alternative roles, but redundancies will be inevitable.

BrightHouse has faced challenges like higher rent and rates, as well as a rising minimum wage and lower footfall in town centres.

Customers affected by the store closures will be transferred to another local store or served online.

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Customers of BrightHouse will have to continue paying their outstanding loans after the company's accounts were sold to Perch Capital. This means they'll need to make payments to a new company.

Many BrightHouse customers are from low-income households receiving state benefits, and the company allowed them to spread the cost of household items. However, it charged very high interest, which has been a major concern for many customers.

Customers who paid their BrightHouse debt via a debt management plan or individual voluntary arrangement will need to pass the details of their new Perch account to their debt management firm. This ensures their payments go to the right place.

Over 100,000 BrightHouse accounts were sold to Perch Capital, including all outstanding loans. Customers should have received a letter from BrightHouse explaining payment arrangements with Perch.

BrightHouse customers will need to contact Perch to set up their payment arrangement, as it won't be automatically transferred. They can reach Perch via email at [email protected] or by phone on 01253 531517.

All interest has been written off, so customers' balances owed should be lower than they were previously. However, this doesn't change the fact that they still need to make payments.

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Now that BrightHouse has collapsed, administrators Grant Thornton will try to find buyers for the business. This means that customers may have options to sell or transfer their items, but it's essential to be cautious.

Customers need to think carefully about whether they can afford to make repayments. If their income has fallen due to coronavirus, they should ask for a payment break.

A payment break can give customers temporary relief, but it's crucial to review their finances and consider alternative options. Debt adviser Sara Williams suggests asking for a lower payment arrangement if the item is too expensive.

The FCA introduced rules last year to cap the cost of rent-to-own, including capping interest charged to the cost of the product. Prices were also controlled, with shops only able to charge no more than the median price of three mainstream retailers.

If customers are struggling with debt, they may be able to make an affordability complaint and get a refund of the interest they've paid on previous items.

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