Rent-to-own retailer BrightHouse is close to securing a rescue package with private equity firm Apollo Management.
A deal with Apollo taking nearly half the shares in a debt-for-equity swap is expected within days, according to a report by Sky News.
Sources quoted by Sky said BrightHouse chairman Henry Staunton, the former ITV executive, is expected to step down once the deal is complete.
£15 compensation order
The chain’s previous owner, fellow private equity firm Vision Capital, will be left with a stake of just 3%, according to the reports.
The move comes just weeks after City watchdog the Financial Conduct Authority (FCA) ordered BrightHouse to pay £15m compensation to 250,000 customers for failing to act as a “responsible lender” and properly assessing their ability to pay.
The deal still requires the formal approval of creditors and the FCA.