There are fresh job fears for Dundee after rent-to-buy firm Brighthouse, which has a shop in the city centre, confirmed it had gone into administration.
It was confirmed today the firm, which is the biggest operator of its kind in the UK, had drafted in administrators to help salvage the business after its shops were forced to shut because of the ongoing coronavirus pandemic.
The company, which has an outlet in the Wellgate Centre, had previously been struggling after being ordered to pay £14.8m to 249,000 customers by the financial regulator, the Financial Conduct Authority, after it was determined they had not acted as a “responsible lender”.
Back in 2017, it was found that the company had given rental agreements to certain customers despite them being unable to realistically afford to make the repayments.
The company currently has 240 shops nationwide, including its Wellgate store.
Around 2,400 people are employed throughout the country and it is unclear at this stage how many jobs are at risk from the Dundee store.
Customers have been advised that they should continue to make the monthly payments required to keep their household goods, with administrators now acting as the collecting agent.
Failing to make repayments, even though the company is in administration, could lead to “extra charges and harm a credit score”, administrators have advised.
However, all new rent-to-own agreements and cash loans, which the company also provided, will now be stopped.
Accounting company, Grant Thornton will act as the administrators and will now try to find a buyer for some or all of the business.
Both Brighthouse and the Wellgate Centre have been approached for comment.