Brighthouse falls into administration following coronavirus store closures

The rent-to-own retailer, which operates a 240-strong store estate, has appointed Grant Thornton as its administrator.

The struggling business has advised that shoppers should continue to make monthly payments for household goods they have bought from the business, with administrators now acting as the collecting agent.

The retailer has around 200,000 customers. An announcement on its administration is expected by Tuesday morning, Sky News has reported.

Its insolvency means customers with outstanding misselling complaints are unlikely to receive the amount of compensation they are seeking.

Brighthouse has been on the brink for many months, but it is understood that discussions with regulators and other stakeholders about a possible rescue plan that would have involving restructuring its liabilities ground to halt after the outbreak of coronavirus.

Julie Palmer, from corporate recovery business Begbies Traynor, said: “Coronavirus was the final nail in the coffin for Brighthouse.”