BrightHouse rival Buy As You View has appointed administrators after suffering heavy losses, Sky News reported.
Its troubles renew concerns about the wider health of the rent-to-own sector, also occupied by larger retailer BrightHouse and Perfect Home.
Buy As You View’s parent company Dunraven Finance has reportedly appointed professional services firm EY as administrator, less than 18 months after agreeing a customer redress programme with the City watchdog.
Jobs under threat
Around 230 jobs are understood to be at risk while a buyer is sought for the business.
According to sources, 40 members of staff were made redundant on Friday.
Like BrightHouse, the business has been struggling since the introduction of stricter lending controls by the Financial Conduct Authority (FCA) in 2015.
In an effort to drive down costs, Buy As You View – which generated a turnover of £70m in 2014 and has about 40,000 customers – recently switched to an online sales model. In addition to its headquarters, it has five smaller offices and distribution hubs across the country.
Competitor firm BrightHouse is also undergoing a restructuring with lenders submitting a revised plan to the FCA and other stakeholders.
Transactional website under construction
It is currently in the process of constructing a fully transactional website, but also has a sizeable store portfolio.
Earlier this year, new BrightHouse boss Hamish Paton took the decision to shutter 28 of its 311 stores as it too sought to curb costs.
EY confirmed it had been appointed by Buy As You View.
“The directors of Buy As You View concluded reluctantly that they should place the company into administration to allow options to be assessed by the joint administrators and to enable further restructuring to be undertaken,” it said.