The rent-to-own retail chain BrightHouse has confirmed that its Sutton store will be closing down in March.
The move is a part of a cost-cutting programme and will see 28 of the 311 nationwide stores shut down and 150 jobs are at risk.
The decision is part of a new strategy unveiled by boss Hamish Paton who took over at the helm last October hopes his three to five year plan will “set the business up for long-term sustainable growth”, following a “challenging 18-months”.
BrightHouse’s business practices were targeted by MPs in 2015. The retailer said last year that conducting more rigorous affordability checks on potential customers was hurting its business model.
Hamish Paton, chief executive of BrightHouse, said that the business aims to simplify its processes, including the launch of online sales website, as well as reducing administrative tasks to allow for improved customer service.
Speaking to Retail Week Mr Paton said: “We have been heavily reliant on our store infrastructure but as we move forwards I want to ensure customers can interact with us both in-store and online.
“This is a really important marker for us as a business and will form a big part of our future.”
BrightHouse said that the affected workers are being supported to find another role within the business.
The company, which is owned by equity firm Vision Capital, remains in talks with the Financial Conduct Authority (FCA) as it processes its application, which awaits approval, and revealed a cost of over £3m in its ‘affordability action plan’ to meet FCA regulations.