Brighthouse ‘to be put up for sale’
Rent to buy furniture and electricals retailer Brighthouse could be sold.
Owner Vision Capital has retained advisors at Rothschild and will begin a sale process next month, according to The Telegraph. Brighthouse has £220m of bonds that need to be refinanced next year.
Brighthouse has seen profits crash after the Financial Conduct Authority imposed more detailed consumer application requirements as part of a wider investigation of the sector. This saw a major drop in new customers.
The company had been criticised for its high interest rates and late payment penalties. In response it introduced variable rates where shoppers can pay off the price quicker. However a Fortana leather sofa (pictured) costing £863.51, including £60 delivery, costs £1107.08 if paid over a year. Over three years the cost rises to £1716, with an APR of 69.9%.
In addition customers must have accidental damage, fire and theft insurance. If bought from Brighthouse this costs £1.34 a week. An optional care package costs £2.05 a week. If both were signed up for, the Fortana over three years would eventually cost £2,244.84.
In 2014 Vision Capital was looking to float the chain before the FCA’s move.