We’ve highlighted this in the past as a really, really expensive way to buy anything and most of the trade aren’t really fans will we say of Brighthouse but it appears that the retailer may be facing some real problems.
The Telegraph has reported that the retailer has managed to win a stay of execution as they put it from lenders but there may be more bad news on the horizon this week with a report due that is said to be dating on the way Brighthouse does business.
It is reported that BrightHouse owes bondholders £220m in notes due for refinancing in 2018. That’s a huge amount of money and there are fears that the company cannot afford to service the debt.
Meanwhile the Financial Conduct Authority (FCA) is investigating the hire-purchase sector, also known as rent-to-own, over alleged overcharging and hard-sell tactics targeting vulnerable consumers.
New regulations have seen tighter controls in the sector that, it is said, is leading to a direct decline in the business levels.
Although by no means certain to cause the retailer to disappear from high streets, this isn’t encouraging news for the company and if the FCA cracks down harder it may well become untenable.
