Feb 23 (Reuters) - Activist investment fund Engaged Capital LLC on Thursday nominated five members to Rent-A-Center Inc’s board, just a week after it urged the furniture retailer to explore strategic alternatives, including a sale.
Engaged Capital, which has a 12.9 percent stake in Rent-A- Center, said it was concerned that the company’s board and management could take actions that would materially harm shareholders.
The activist fund said its nominees include Mitchell Fadel, Rent-A-Center’s former president and chief operating officer, as well as William Butler, former COO of Aaron’s Inc, a rent-to-own furniture retailer.
Engaged Capital had on Feb. 14 urged Rent-A-Center to explore a sale, to which the company responded by saying it was looking at strategies to cut costs and boost revenue.
Rent-A-Center’s shares were up 2.4 percent at $8.61 in morning trading. (Reporting by Gayathree Ganesan in Bengaluru; Editing by Savio D‘Souza)