June 11, 2018 / 8:01 AM / a year ago

Rent-A-Center fails to find suitable buyer, ends strategic review

June 11 (Reuters) - Rent-A-Center ended its strategic review and a potential sale of the company as it did not receive any proposals that met the objectives for a sale, the rent-to-own furniture retailer said late on Sunday.

However, the company said it will regularly review opportunities and continue with its cost-cut initiatives, which are “significantly ahead of schedule”, and expects to generate over $100 million in annual run-rate savings and realize about $70 million in savings in 2018.

Plano, Texas-based Rent-A-Center earlier expected to save $75 million to $95 million annually from the cost-cutting plans.

The company, which has been under pressure from its shareholders Engaged Capital and Marcato Capital to sell itself, rejected buyout offers last July.

The company also forecast consolidated revenue of $640 million to $660 million for the second quarter and $2.64 billion to $2.69 billion for the full year. Adjusted EBITDA is expected to be in the range of $40 million to $50 million for the second quarter, it said. (Reporting by Rama Venkat Raman in Bengaluru; Editing by Gopakumar Warrier)

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