BrightHouse has collapsed into administration, putting around 2,400 workers at risk of losing their jobs.
The rent-to-own retailer, which provides loans to consumers in order for them to buy electrical items, has 240 stores across the UK and is attempting to salvage parts of the business.
Why has the company collapsed?
The company has been struggling with losses, following an influx of compensation claims for selling to customers who were unable to repay the loans.
The collapse comes just days after the chain closed all of its stores due to the coronavirus outbreak. Non-essential stores across the country have been forced to shut their door, putting pressure on businesses that were already on the brink of closure.
Administrators were appointed to Caversham Finance Limited - which trades as BrightHouse, and Caversham Trading Limited (CTL) - on Monday (30 Mar) morning.
The firm’s collapse came just minutes before Italian restaurant chain Carluccio’s also fell into administration.
What will happen to customers’ appliances?
The administrators said the logistics and engineering arm of BrightHouse would continue to repair customers' items and deliver smaller items.
The business has appointed Grant Thornton to keep things running, and to continue collecting money from customers.
The business will still look after customers' appliances until their contracts run out, but there will be no new rent-to-own sales. Experts also said that customers who are claiming compensation from the company might have to wait for longer than usual to do so.