"Our plan is to "set up shop" inside
stores where we believe we can leverage the expense structure
of both operations"
William Morgenstern, CEO, Rent-Way
Rent-Way, Inc. (RWY)
announced today that it has entered into an exclusive arrangement with
Home Furnishings Inc., (LHFI) whereby it will test the offering of a lease
purchase option in several Levitz Home Furnishing Stores.
"We are excited to have reached the point where we can launch a test
program with LHFI. We have invested significant time and money sampling
customer interest and establishing operations systems to go forward with this
effort. Our plan is to "set up shop" inside LHFI stores where we believe we
can leverage the expense structure of both operations. The sales will be
incremental for Levitz and additive for RentWay. By nesting full time leasing
agents that will be employees of RentWay inside Levitz stores, we believe we
will capture the greatest number of potential customers and provide the
highest level of customer service," stated William Morgenstern, CEO, Rent-Way,
William McDonnell, RentWay's Chief Financial Officer commented, "The test
program has been launched in two stores and we expect to expand the test to
six stores over the next 90 days. We will discuss the anticipated financial
impact of this test during our earnings conference call next week."
"By offering a lease option for our customers, we complete an array of
financing alternatives our customers have been asking for," added Jay
Carothers, CEO, LHFI. "With the new lease-purchase program we will be offering
under a private label name, a wider array of our customers can get the quality
furniture they want while making affordable monthly lease payments. We're
pleased to be working with Bill Morgenstern and his team, and look forward to
rolling out the program company wide upon the successful conclusion of this
LHFI is a leading furniture retailer in the United States and currently
operates 129 stores in 11 states under the Levitz and Seaman's brand names.
LHFI holds the number one or number two-market share in most of the markets it
serves, including the number one market share in its primary markets of New
York, Los Angeles and San Francisco. LHFI's estimated yearly sales are
approximately USD$1 billion.
Rent-Way operates 761 stores
in 33 states.
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