Reuters logo
Furniture retailer Rent-A-Center adopts poison pill
March 28, 2017 / 12:52 PM / 9 months ago

Furniture retailer Rent-A-Center adopts poison pill

(Reuters) - Rent-A-Center Inc (RCII.O) said on Tuesday it adopted a stockholder rights plan, or a so-called “poison pill”, a month after activist investor Engaged Capital LLC stepped up efforts to push the furniture retailer to sell itself.

Engaged Capital, which owns a 12.9 percent stake in Rent-A-Center, last month nominated five candidates for election to the retailer’s board of directors.

Plano, Texas-based Rent-A-Center said the stockholder rights would become exercisable if group buys 15 percent or more of its outstanding shares.

    Rent-A-Center, which has struggled with declining sales for over a year, said last month it would seek to cut costs and boost revenue after Engaged Capital heaped pressure on the retailer to explore a sale.

    However, the activist fund disapproved Rent-A-Center’s “risky” turnaround strategy and urged the company’s board to consider other options.

    Rent-A-Center’s shares were largely unchanged in early trading on Tuesday.

    Reporting by Gayathree Ganesan and Sruthi Shankar in Bengaluru; Editing by Sai Sachin Ravikumar

    0 : 0
    • narrow-browser-and-phone
    • medium-browser-and-portrait-tablet
    • landscape-tablet
    • medium-wide-browser
    • wide-browser-and-larger
    • medium-browser-and-landscape-tablet
    • medium-wide-browser-and-larger
    • above-phone
    • portrait-tablet-and-above
    • above-portrait-tablet
    • landscape-tablet-and-above
    • landscape-tablet-and-medium-wide-browser
    • portrait-tablet-and-below
    • landscape-tablet-and-below