Association of Progressive Rental Organizations

Brighthouse breathes sigh of relief as it closes in on FCA approval

brighthouse-logoWritten by Ashley Armstrong, Retail Editor, The Telegraph
The struggling rent-to-own electricals chain BrightHouse has revealed that the UK’s financial regulator has said it is minded to grant it a consumer credit licence so long as the company refinances its debt and sticks to its new business plan. The Financial Conduct Authority (FCA) has been investigating BrightHouse, which lets consumers buy goods on extended payment plans, as part of its wider scrutiny of the hire-purchase sector amid allegations of overcharging and hard-sell tactics.

In an attempt to secure its credit licence BrightHouse has agreed to more stringent checks on its customers’ finances before lending to them.

BrightHouse, which is currently owned by private equity firm Vision Capital, said that it was able to demonstrate that it treats customers “fairly”. An investigation last year found that the cheapest washing machine at BrightHouse, which was available on the high street for £350, could cost as much as £1,056 if someone paid weekly over three years. However, BrightHouse sales have fallen as a result of the tighter restrictions disqualifying more customers and creating longer queues. Hamish Paton, chief executive, has previously said that the company is investing in new technology to address delays in shops that are harming ales. The company said that the FCA would authorise it so long as BrightHouse demonstrates that it is “balance sheet and cashflow solvent” and that it had refinanced its debt by May 15, 2018. BrightHouse now faces a showdown with hedge funds that began buying into its debt after the FCA said last year that it was working with the company to tackle a “number of immediate and pressing concerns” about business practices.
The chain, which has 280 shops, owes bondholders £220m in notes that are due for refinancing by next year. There had been some concern that the FCA would deny BrightHouse a licence, that the company would be hit with a large fine, or that the regulatory process would take so long it would prevent a refinancing.
However, now that threat has passed, the company’s bonds have risen by 4p in the pound to 78p compared to the 65p mark that attracted the hedge funds. “We are pleased to have successfully reached this important milestone and that the FCA is minded to authorise our business, subject to all of the above conditions being met by May 15, 2018 – primarily regarding refinancing our corporate bond,” the company said. “That refinancing is due by May 2018 and we are confident this will happen before then.” The bondholders are working with advisers at PJT and Sullivan & Cromwell while BrightHouse, which was formerly known as Crazy George, is working with advisers at Rothschild and Freshfields. The FCA declined to comment. Source: The Telegraph

Upcoming Events




Mike Lewis

Mike Lewis is a Premier Rental Purchase franchisee with multiple stores and currently serves as Vice President of Operations. With 33 years of experience in the rent-to-own industry, he has spent the past 20 years working closely with franchisee owners and previously spent 12 years in Corporate RTO, gaining a strong foundation in the business.

For the past five years, Mike has been sharing his knowledge by teaching managers and franchisees at the company’s Training Center.

Outside of work, he enjoys time with his family, kids, and grandkids, and appreciates the simple things in life – especially riding his Harley Davidson with the sun on his face. If you know, you know!

Lauren Talicska

Arona Corporation dba Arona Home Essentials

Lauren Talicska is an experienced multi-channel marketing specialist and the Vice President of Marketing & Communications at Arona Home Essentials. She has found her home in the RTO community, supporting stores in branding, growth, and increasing traffic.

You may recognize Lauren as a former RTO vendor, including her time as a partner for Nationwide RentDirect, or her previous participation in the APRO Vendor Advisory Committee. Lauren calls Columbus, Ohio, home and spends her workday crafting and executing marketing promotions from inception to realization, all while supporting the branding and social media needs of all the Arona stores in 12 states (plus Puerto Rico!).

Charles Smitherman

APRO

Charles Smitherman, JD, PhD, CAE, became CEO of APRO in 2023, bringing years of legal and executive experience in the rent-to-own industry. 

Prior to joining the association, Charles served as COO, General Counsel, and Vice President of PTS Financial Services, where he played an active role in the rent-to-own industry by representing his company through PTS’s club program offering with APRO member dealers. Charles is an attorney with two decades of experience across a wide variety of areas, including RTO, consumer financial services, antitrust, corporate law, mergers and acquisitions, litigation, franchise law, and privacy law. Following law school at the University of Georgia, Charles earned a Master of Legal Studies and PhD in Law from the University of Oxford in England.

Charles is credentialed as a Certified Association Executive (CAE) with the American Society of Association Executives, a Certified Franchise Executive (CFE) with the International Franchise Association, and a Certified Information Privacy Professional (CIPP/US) and Certified Information Privacy Manager (CIPM) through the International Association of Privacy Professionals. As APRO’s sixth CEO in its 45-year history, he brings a collaborative, member-focused approach to association leadership, emphasizing transparency, advocacy, and value creation. Outside of work, Charles is an active ultra runner and open water swimmer.

Mike Kays

Ashley Furniture Industries

As VP of Rental Sales for Ashley Furniture Industries, Mike thrives on building relationships with our RTO industry veterans, and helping businesses grow through new product, new marketing, and new supply chain options.

Mike works to leverage a wide breadth of relationships and influence, intimate knowledge of market trends, and unique knowledge of what RTO dealers need from a supplier to be successful.

The saying goes that a high tide raises all boats, and our goal is to leverage the world’s largest furniture manufacturer to drive the continued growth of the RTO industry and all the suppliers.

Mike Tissot

Countryside Rentals Inc., dba Rent-2-Own

Mike grew up in the rent-to-own industry under the guidance of his father, former APRO President and RTO legend Darrell Tissot. For nearly 25 years, Mike’s innovative leadership has helped expand the family business to more than 40 stores across Ohio and Kentucky while also shaping the industry as a whole.

He has served as President of the Ohio Rental Dealers Association, an APRO board member and Treasurer, and President and Treasurer of the TRIB Group. His contributions have earned him the APRO President’s Award of Excellence and the title of APRO Rental Dealer of the Year.

Outside of RTO, Mike enjoys time at the lake house or in Orange Beach, Alabama, with his girlfriend, Angela Strong McCool. A passionate Cincinnati Reds fan, he rarely misses a game, whether watching or listening alongside his parents. He also takes every opportunity to visit Arizona, where his daughter is currently attending Arizona State University.