Jobs fears after home store closes for good
Rent-to-own store BrightHouse – which has a branch in Paisley town centre – has closed after the chain collapsed, putting jobs in jeopardy.
Administrators have now been called in to try and salvage parts of the business which has 240 stores across the UK - making it the largest of its kind in the country.
The Paisley outlet is based in the Piazza shopping centre and is currently closed due to the lockdown.
It is not yet known how many jobs will be lost at the Paisley store.
Concerns have been raised about the effects the government lockdown will have on high street businesses.
BrightHouse, which has 200,000 customers across the country, stated the economic impact of the coronavirus led to the financial woes of the company.
However, the company had been struggling after an influx of compensation claims for selling to people who could not repay.
Rent-to-own customers make monthly payments for household items, in effect renting goods until they have paid in full.
Many are on low incomes and find it difficult to access credit from mainstream lenders to pay for fridges, TVs, washing machines and other electrical items.
The stricter lending rules had put the business under strain long before shops were closed owing to coronavirus.
It is understood that while the business has closed, customers should continue to make the monthly payments required to keep their household goods, with administrators now acting as the collecting agent.
Grant Thornton has been appointed as administrators following the announcement on March 30.
The accountancy firm has overseen the administrations of payday lenders including Wonga and QuickQuid in recent years.
A statement from BrightHouse read: “Unfortunately we have taken the decision to close all
BrightHouse stores in response to the latest Government guidance on managing the coronavirus outbreak. We are experiencing extremely high call volumes. Please do not call unless your enquiry is urgent.
“This will enable us to deal with calls from our most vulnerable customers who really need our help. We thank you for your patience.
“We want to re-assure you that at this difficult time we are doing everything we can to ensure that you are supported.”