Rent-to-Own Retailer Struggles with Financial Setbacks

  • Brighthouse reports £16m loss for Q2 2019
  • EBITDA loss at £3.2m compared to £1m in the same period last year
  • £5.6m provision set aside for customer claims and complaints
  • Increased affordability claim provisions by £5.6m
  • Closed 30 stores, putting 350 jobs at risk

Brighthouse, a rent-to-own retailer, has reported a £16 million loss for the financial quarter ending September 28, 2019. This is an increase from the £11 million loss in the same period of 2018. The company’s EBITDA loss also rose to £3.2 million compared to £1 million last year. Brighthouse has set aside a provision of £5.6 million to cover customer claims and complaints, which have been higher than anticipated. As a result, the affordability claim provisions increased by £5.6 million. In October 2017, it was announced that Brighthouse would close 30 stores, putting 350 jobs at risk. The company now operates from 245 stores compared to 281 in 2018.

Factuality Level: 7
Factuality Justification: The article provides accurate and relevant information about Brighthouse’s financial performance and the reasons for its losses, including specific figures and context. However, it could provide more details on the nature of the affordability claims and the impact of store closures on the company’s overall performance.
Noise Level: 6
Noise Justification: The article provides relevant information about Brighthouse’s financial performance and the reasons behind its loss, but it could benefit from more context or analysis on the industry trends and potential solutions to address customer complaints.
Financial Relevance: Yes
Financial Markets Impacted: Brighthouse’s financial performance and stock price
Financial Rating Justification: The article discusses Brighthouse’s financial losses, changes in EBITDA, provisions for customer claims, and store closures which impact the company’s financial situation and operations.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text.

Reported publicly: www.retailsector.co.uk