Brighthouse said that the Financial Conduct Authority is minded to authorise the retailer’s business provided it refinances its debt and maintains its business reform plan.

The struggling rent-to-own retailer, which submitted its business reform plan to the financial watchdog in February, has won conditional approval from the financial watchdog to continue lending to shoppers.

A statement from Brighthouse said that the FCA would authorise the retailer, provided it re-structures its existing debt by May next year to “demonstrate that it is a financially sustainable business for the foreseeable future.”

Rigerous checks

The retailer must also continue to carry out more rigorous checks on its customer’s finances before lending to them and is not allowed to charge shoppers for late payments.

The electricals retailer, which unveiled plans to shutter 28 stores in January, said it had demonstrated to the FCA that it treats its customers “fairly.”

Brighthouse’s business reform plan also involves the retailer investing in new technology, such as launching a transactional ecommerce platform, to modernise its business.

New chief executive Hamish Paton said he hopes his reform plan will “set the business up for long-term sustainable growth.”