Rent a Center CEO Mark Speese announced that approximately 177 (60%) of the acquired Rent Way locations will be closed. The agreements will be consolidated into existing Rent a Center locations.

These closures will effect over 700 employees.

As per the terms of the deal, Rent a Center will only be responsible for the leases on the locations that will remain open.

Stores that will remain open have an average monthly revenue of $37,000.

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Rent Way locations being kept have averaged over 11% Saturday close for the past 6 weeks since the deal was announced. (Rent Way's goal is 10%, Rent a Center stores typically close at less than 6%).

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Monthly revenue for the 'kept' locations is down 30% from their historical highs due to lack of inventory and other factors.

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Re-branding of Rent Way locations to begin Thursday

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When Rent A Center purchased Thorn Americas, they paid a multiple of 12.3 times monthly revenue for stores averaging $50,000. The majority of Thorn stores were kept open. The Rent Way locations were purchased at a multiple of 10 times monthly revenue.

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Conversion of all stores to the Rent a Center model expected to be complete in 30 - 45 days.

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Rent a Center will focus on solidifying this acquisition for 90 - 120 days before beginning more acquisitions.

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02-11-03
2:00 pm
Rent a Center stock is down -1.95 (-3.90%) to 48.10 on extremely heavy volume.

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