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{{Infobox_Company |
{{Infobox_Company |
company_name = Rent-A-Center |
company_name = Rent-A-Center |
company_logo = [[Image:Rent a center logo.png|180px]] |
company_logo = [[:Image:Rent a center logo.png|180px]]<!--Non free file removed by DASHBot--> |
company_type = [[Public company|Public]] ({{Nasdaq|RCII}}) |
company_type = [[Public company|Public]] ({{Nasdaq|RCII}}) |
foundation = [[Wichita, KS|Wichita]], [[Kansas]], [[USA]] ([[1986]]) |
foundation = [[Wichita, KS|Wichita]], [[Kansas]], [[USA]] ([[1986]]) |

Revision as of 05:01, 22 October 2010


Rent-A-Center
Company typePublic (Nasdaq: RCII)
IndustryHome furnishings rental
FoundedWichita, Kansas, USA (1986)
HeadquartersPlano, Texas, USA
Key people
Mark Speese, Chairman and CEO
Mitch Fadel, President and COO
Robert D. Davis, CFO, Treasurer
Christopher Korst, Executive Vice President
Theodore DeMarino, Executive Vice President
Ronald DeMoss, General Counsel & Secretary
David West, Executive Vice President, Operational Services[2]
ProductsProvides furniture, electronics and household appliances available under "rent to own" agreements
RevenueIncrease2.752 Billion USD (2009) [3]
Number of employees
18,000 (2009)

Rent-A-Center is an American public furniture and electronics rent to own company based in Plano, Texas.[4]

Overview

Rent-A-Center, commonly referred to as “RAC,” was incorporated in 1986 and currently operates 3,007 company-owned stores in the United States, Canada, Puerto Rico and Mexico, accounting for 38% of the rent-to-own market in the United States based on store count.[4][1]

The company’s operations include 23 retail installment stores called Get It Now (based in Wisconsin); 18 Home Choice stores in Illinois and Minnesota; 18 rent-to-own stores in Canada that go by Rent-A-Centre and Better Living; and 134 RAC Acceptance kiosks housed within retail partner stores. Its subsidiary, ColorTyme Inc., is a national franchiser which has 210 stores in 33 states. The company also offers Rent-A-Center Corporate Leasing which provides businesses with furnishings for short-term employee living arrangements and National Product Service, a merchandise warranty and repair service.[5][4][6] Within 353 Rent-A-Center retail store locations, the company offers financial services such as loans, debit cards, check cashing and money transfers through its RAC Financial Services arm.[7]

In 2009, Fortune Magazine listed Rent-A-Center at number 706 on the Fortune 1000 list of the largest U.S. corporations, based on a composite ranking of revenues, profits, assets market value and other measures.[8]

Competitors include Aaron’s, Inc., Easy Home, Best Buy Co. Inc., and Wal-Mart Stores.[9]

History

The rent-to-own business was started by J. Ernest Talley in Wichita, Kansas during the 1960’s when he told customers of his store, Mr. T’s Rental, that they had rented a washer and dryer for a long enough duration that they had paid for it in full and now owned it.[10] Thomas Devlin, a former employee of Mr. T’s rental, recognized the potential of renting name-brand products and partnered with W. Frank Barton and founded the Rent-A-Center brand in Wichita, Kansas in 1973.[11][12]

Mark Speese joined Rent-A-Center in 1979. In 1986, Mr. Speese and a colleague left Rent-A-Center and started a competing business known as Vista Rent-To-Own.[13][14] Ernest Talley then joined Vista Rent-To-Own as Chairman of the Board of Directors in 1989 and remained Chairman through Vista’s transition to Rent-A-Center.[14] In 2001, Talley retired and Speese was appointed as Rent-A-Center’s Chairman and CEO.[15]

Vista Rent-To-Own changed its name to Renters Choice, Inc. in December 1993, in connection with the acquisition from DEF Investments, Inc. and certain related entities of an 84 store rent-to-own chain operating in 12 states.[16]

Renters Choice went public on the NASDAQ stock exchange in 1995 under the symbol “RCII.”[17][18]

In August 1998, Renters Choice acquired Thorn Americas, Inc., which operated 1,474 stores in 49 states and the District of Columbia under the name “Rent-A-Center.” On December 31, 1998, Renters Choice changed its name to Rent-A-Center, Inc. and began operating all of its stores under the “Rent-A-Center” brand name.[19]

In February 2003, Rent-A-Center acquired 295 stores from Rent-Way, Inc.[20] In March 2004, Rent-A-Center commenced operating in Canada with the acquisition of five stores located in Edmonton and Calgary, Alberta.[21] Later that year in May 2004, Rent-A-Center completed the acquisitions of Rainbow Rentals, Inc. and Rent Rite, Inc.[22]

Rent-A-Center completed its acquisition of competitor Rent-Way, Inc. on November 15, 2006, for a price of approximately $600.3 million. At the time of the acquisition, Rent-Way was ranked number three in the rent-to-own industry with 782 stores in 34 states.[23] The Rent-Way store acquisition program brought the store total to 3,535 stores. Given that the acquisition resulted in over-penetration in some markets, Rent-A-Center carried out the closing or merging of 282 stores between 2007 and 2009.[24]

A Rent-A-Center Service Vehicle

Business operations

RAC provides new and used brand-named electronics and household furnishings including washers and dryers, refrigerators, televisions, and furniture from brands such as Ashley Furniture, Sony, Toshiba, Whirlpool Corporation, Dell and HP.[4] As part of their rent-to-own business model, Rent-A-Center generally makes its items available with no down payments or long term obligations. Customers can return an item at any time, for any reason, without penalty and also have the option to re-rent the same item and pick up the payments where they left off. Delivery, pick-up, service and repair are also included in the stated rental price. Customers can also upgrade items while they are renting and have previous payments apply to the new merchandise.[25]

Home office info

In March 2007, the corporate office moved to a new location at 5501 Headquarters Drive, Plano, Texas, in the Legacy Business Park. Construction began on the 175,000 square foot building in January of 2006 and employees moved into the building on March 16, 2007. The current headquarters is three stories and includes structured parking for 400 vehicles, a fitness center, and lunchroom.[26]

Corporate philanthropy

Rent-A-Center’s Make A Difference Scholarship annually gives $60,000 worth of scholarships to customers and the children of customers and coworkers. Through the Random Acts of Caring initiative, which was launched in 2008, RAC has donated merchandise and funding to charitable organizations located in communities where Rent-A-Center has locations.[27] Since 2005, Rent-A-Center has donated and set up 115 “RAC Rooms” at Boys and Girls Clubs of America locations. Each club selects $5,000 worth of brand new furniture, electronics and computers for their “RAC Room.”[12] RAC also makes donations to the Big Brothers Big Sisters of America by holding annual fund raisers in Rent-A-Center stores. Rent-A-Center matches donations up to $100,000 and as of April 2010 has surpassed the $2 million donation mark.[28] Rent-A-Center has supported Junior Achievement with grants to 35 locations to teach financial literacy; and has been a supporter of local and national food banks including Feeding America and the North Texas Food Bank.[29][30][31] Rent-A-Center’s “Soup to Nuts” campaign involves its 3,000 stores acting as collection points for cans of soup, jars of peanut butter and other canned goods to provide assistance to food pantries in the U.S.[32] An initiative begun in 2010 is Rent-A-Center’s Military Donation Program, in which merchandise with a wholesale value of $175,000 is delivered to 10 Army garrisons. Contributions benefit various Family & Morale Welfare and Recreation operations that provide community and family services, such as the Soldier and Family Assistance Centers that aid wounded, ill and injured soldiers and their families.[33]

Controversy

A number of consumer protection concerns have been raised about the rent-to-own industry, including accusations of predatory lending.[34] While Rent-A-Center asserts that it's a leasing business, consumer advocates believe that rent-to-own transactions should be treated as credit sales, and point out that the price of a product can be two or three times the retail price. Although, some are quick to point out that all prices are shown on the customer contract.[35]

In 2002, Rent-A-Center was sued for sexual bias in the hiring of women. The agreement resulted in a $47 million cash payment by Rent-A-Center and forced Rent-A-Center to offer 10% of future vacancies over the following 15-month period to women who were found to be past victims of discrimination.[36][37]

In 2006, Rent-A-Center settled for $7 million in restitution and $750,000 in civil penalties for deceptive business practices in California. The State of California claimed RAC, in violation of state law, engaged in unfair competition and illegally misrepresented the price of certain merchandise.[38]

In 2010, seven months after the Washington Attorney General’s Office sued Rent-a-Center and accused the national lease-to-own chain of crossing the line with its collection tactics – including cussing at customers, pounding on doors, peering in windows and threatening arrest – Rent-A-Center agreed to settle.[39]

Other names

The Rent-A-Center company converted its Wisconsin stores to Get-It-Now! credit sale outlets after a judicial decision held that the state’s consumer protection laws defining credit sales included rent-to-own businesses.[40][41]

See also

References

  1. ^ a b "Rent-A-Center Employees". Retrieved 15 September 2010.
  2. ^ "Rent-A-Center Executive Officers". Retrieved 15 September 2010.
  3. ^ "Rent-A-Center Revenue". Retrieved 15 September 2010.
  4. ^ a b c d "Rent-A-Center Profile". 10 August 2010. Retrieved 10 August 2010.
  5. ^ "Company Overview". 10 August 2010. Retrieved 10 August 2010.
  6. ^ "Retail". CONSUMER ELECTRONICS DAILY. 2010. {{cite journal}}: Unknown parameter |month= ignored (help)
  7. ^ "BUYINS.NET: XOM, GCI, HOLX, EXXI, RCII, PCBC Expected To Be Lower After Earnings Releases on Monday" (Press release). M2 PressWIRE. 29 January 2010. {{cite press release}}: |access-date= requires |url= (help)
  8. ^ "Fortune 1000 2009". Retrieved 15 September 2010.
  9. ^ "Competitors". 10 August 2010. Retrieved 10 August 2010.
  10. ^ Rivlin, Gary (2010). Broke, USA: From Pawnshops to Poverty, Inc. - How the Working Poor Became Big Business. New York, NY: HarperCollins. p. 26. ISBN 0061733210. {{cite book}}: |access-date= requires |url= (help); Cite has empty unknown parameter: |coauthors= (help)
  11. ^ "The Barton Legacy". 10 August 2010. Retrieved 7 August 2007.
  12. ^ a b Dan Voorhis (11 September 2003). "Rent-A-Center Founder Honored at Wichita, Kan., State University". The Wichita Eagle.
  13. ^ "Rent-to-Own News - Speese Honored for Lifetime of Entrepreneurship" (Press release). Targeted News Service. 10 November 2009. {{cite press release}}: |access-date= requires |url= (help)
  14. ^ a b "SEC Info". Retrieved 15 September 2010.
  15. ^ "RENT-A-CENTER GIVES PROFITS WARNING". The Wichita Eagle. 10 October 2001. {{cite news}}: Cite has empty unknown parameter: |1= (help)
  16. ^ "1997 10-K". 19 March 1998. Retrieved 15 September 2010.
  17. ^ Michael Saul (31 March 1995). "10 Texas firms make Fortune's fast-growth list". The Dallas Morning News.
  18. ^ "Equity". Investment Dealers' Digest: 28. 1995. {{cite journal}}: Unknown parameter |month= ignored (help)
  19. ^ "1998 10-K". 25 March 1999. Retrieved 15 September 2010.
  20. ^ "2003 10-Q". 5 November 2003. Retrieved 15 September 2010.
  21. ^ "2003 10-K". 11 March 2004. Retrieved 15 September 2010.
  22. ^ "2004 10-Q". 30 July 2004. Retrieved 15 September 2010.
  23. ^ "Rent-A-Center completes Rent-Way purchase". Dallas Business Journal. 15 November 2006. {{cite news}}: Cite has empty unknown parameter: |1= (help)
  24. ^ "Rent-A-Center Acquires Rent Way For $567 Million". RTO Online. 6 August 2006. Retrieved 15 September 2010.
  25. ^ "Process". 10 August 2010. Retrieved 10 August 2010.
  26. ^ "Headquarters Completed in Plano". Texas Construction. 15: 11. 2007. {{cite journal}}: Unknown parameter |month= ignored (help)
  27. ^ "Rent-A-Center Furnishes Homes for New Orleans 'Katrina' Families" (Press release). Targeted News Service. 9 December 2009. {{cite press release}}: |access-date= requires |url= (help)
  28. ^ "Two Millionth Egg Sold for Big Brothers Big Sisters in Rent-A-Center" (Press release). PR Newswire. 27 April 2010. {{cite press release}}: |access-date= requires |url= (help)
  29. ^ "Giving Briefs". The Roanoke Times. 19 April 2010.
  30. ^ Steve Quinn (22 November 2003). "The Dallas Morning News Collin County Business Column". The Dallas Morning News.
  31. ^ "Pride & Progress". Charleston Gazette. 7 January 2009.
  32. ^ "Rent-A-Center Donates $250,000 Through National Hunger Relief Program" (Press release). Business Wire. 31 August 2010. {{cite press release}}: |access-date= requires |url= (help)
  33. ^ "Rent-A-Center Donates Merchandise to Fort Benning" (Press release). Targeted News Service. 27 April 2010. {{cite press release}}: |access-date= requires |url= (help)
  34. ^ Predatory Rent To Own Stores
  35. ^ Survey of Rent-to-Own Customers - Executive Summary
  36. ^ "EEOC Announces $47 Million Agreement in Principle to Settle Claims of Class-Wide Sex Bias Against Rent-A-Center". The U.S. Equal Employment Opportunity Commission. Retrieved 2007-01-04.
  37. ^ secure.rentacenter.com/rentwaydemotions.html
  38. ^ "Rent-A-Center Deceived Thousands of Californians in Marketing Services, Memberships". California Office of the Attorney General. 2006-11-17.
  39. ^ "Rent-a-Center settles harassment and contract claims". Washington State Office of the Attorney General. 2010-03-01.
  40. ^ Steven Walters (8 March 2004). "Doyle defends OK on rent bill". Milwaukee Journal Sentinel.
  41. ^ Tom Held (13 November 2002). "Rent-A-Center settles lawsuit filed by state". Milwaukee Journal Sentinel.
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