BRIGHTHOUSE has gone into administration.
The collapse of the company has put 2, 400 jobs at serious risk.
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Who owns Brighthouse?
Brighthouse is owned by American private equity firm, Apollo Management, which was founded in 1990.
The firm is headquartered in New York and is listed on the New York Stock Exchange as publicly traded.
Companies owned by Apollo include Claire’s, ADT, Endemol Shine Group and Caesar’s Entertainment Corporation.
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Why did Brighthouse go into administration?
Brighthouse had faced difficulties in recent years.
In 2017, Britain’s biggest rent to own company was ordered to pay £14.8 million to 249,000 customers by the financial regulator, Financial Conduct Authority.
This was in response to the retailer’s inability to pay customers who had cancelled agreements after one downpayment.
The company at the time was told it had not been a responsible lender.
Brighthouse had also been accused of charging excessive interest on lending.
In April last year, the FCA introduced a cap on interest and fees companies like Brighthouse can charge.
As a result of the government’s closure of all non-essential shops, the retailer shut down 240 stores.
What did Brighthouse about its collapse?
Brighthouse has told customers they must continue making payments in the usual way.
The company said: “All outstanding rent-to-own and cash loans remain subject to the terms agreed with CFL and customers should continue to make payments in the usual way according to the company’s terms and conditions.”
Customers who fail to make payment will face extra charges, according to the retailer.
Announcing a joint administration, the company said: “The Joint Administrators will explore options to increase the value for creditors including an orderly wind down of the businesses’ over time and sale of the assets.”
It goes on to say: “The Joint Administrators will start the process of identifying all creditors, in accordance with their statutory obligations, and provide those creditors with information as to the potential for recoveries in the administration estate.”
Brighthouse also informed its customers who pay in-shop to use other remote means in accordance with the government’s directive for Brits to stay at home as a result of coronavirus.
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What is Brighthouse and when was it founded?
Brighthouse was founded in 1994.
It is the trading name of Caversham Finance Limited and employ 2,400 people.
Brighthouse has 240 stores across the UK and offers items such as TVs, fridges and washing machines.
The retailer stocks brands such as Nokia, Samsung, Whirlpool and Sony.
