The UK’s biggest rent-to own retailer, BrightHouse is on the brink of collapse, following a surge in customer compensation claims

The company has been forced to put administrators on standby, with insolvency possible in a matter of weeks, according to Sky News.

The retailer, which has around 240 stores across the UK, provides loans to customers to buy electrical items including televisions and washing machines.

The company has put Grant Thornton on standby to handle the administration.

If the company did fall into administration, around 2,400 jobs could be put at risk.

BrightHouse has said it needed the support of stakeholders in a bid to be “successful” and is currently having active conversations with them.

In 2017, BrightHouse went through a restructuring, which was designed to put the business on a more stable footing.