The future of another High Street retailer in Ayr has today been thrown into serious doubt.
Rent-to-own retailer BrightHouse has collapsed after facing crippling debts.
The company today fell into administration after facing a flurry of compensation claims.
BrightHouse were earlier penalised by the financial authorities for selling goods to people at high-cost credit rates which they would never have been able to pay back.
And those claims, coupled with stricter lending rules- and the current coronavirus, which prompted shop closures- pushed the firm towards the brink.
There was, however, no hint of the growing financial problems engulfing them last week when the company-wide decision was taken to close all stores.
A statement to customers read: “Unfortunately we have taken the decision to close all BrightHouse stores in response to the latest Government guidance on managing the coronavirus outbreak.
“Closing our stores is unprecedented and we know you will have many questions regarding your account. Please bear with us whilst we build capacity in our business to be able to serve you remotely.
“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.
“In the meantime we want to re-assure you that at this difficult time we are doing everything we can to ensure that you are supported.”
It is estimated that BrightHouse has 200,000 customers around the UK and is said to be the largest operator in the rent-to-own market.
Rent-to-own customers make monthly payments for household items, in effect renting goods until they have paid for them in full.
Among the customer profiles include those on low incomes who find it difficult to access credit from high street lenders.
Among the things sold by BrightHouse includes household items such as fridges, TVs, washing machines, stereos and other electrical gear.
Brighthouse is the latest store in Ayr High Street to enter a financial crisis.
In the last year alone the High Street has lost several high profile businesses including Hourstons, a 123 year-old institution in Ayr, followed by the likes of Mothercare, among others.
The Post understands that administrators will now attempt to salvage parts of the business.
