Rent-to-own retailer BrightHouse is up for sale as the business races to refinance £220m of bonds that are due next year.

Owner Vision Capital has retained advisers Rothschild and is set to start a sales process in mid-October, according to The Telegraph.

In June, BrightHouse revealed full-year profits had plummeted 79.1% after new regulations surrounding its business model impacted earnings.

BrightHouse, which has 280 shops, was forced to make changes to its customer sign-up procedure.

The process now includes more detailed assessments of customer’s incomes and their spending in reaction to a wider FCA probe into the rent-to-own sector amid allegations of high-pressure sales tactics and overcharging.

BrightHouse chief executive Hamish Paton wrote in his Retail Week column last week that “the business is performing well and growing again after a period of necessary change”.

Just three years ago Vision Capital was preparing BrightHouse for an IPO but concerns about the FCA process has resulted in Brighthouse becoming a target for US hedge funds seeking to buy its debt and take control of the business.

“We are making progress in returning the business to growth and delivering on our plans,” said Paton. “Steps have been taken to manage our costs and earlier this year we received confirmation from the FCA that they were minded to authorise our business, subject to specific conditions.”

BrightHouse’s listed bonds are currently trading at 77p on the pound.