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Archive for Tuesday, February 11, 2003

Rent-Way sells stores for $100 million

February 11, 2003

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— Rent-Way has sold 295 stores to the largest rent-to-own chain in the country, Rent-A-Center, for slightly more than $100 million.

Rent-Way, the nation's second-largest rent-to-own chain, announced the closing of the sale Monday.

As required under Erie, Pa.-based Rent-Way's credit agreement, all the proceeds of the sale will be used to pay debts.

Shareholders have filed a class-action suit against Rent-Way, its top officers and an accounting firm over an accounting scandal that wiped away more than 80 percent of the company's stock value.

The sale gives Rent-A-Center, based in Plano, Texas, about 2,700 stores, including one in Lawrence. Rent-Way still has about 770 stores.

In trading on the New York Stock Exchange, Rent-Way shares rose 16 cents to close Monday at $3.60 on the New York Stock Exchange, while Rent-A-Center shares rose $1.23 to $50.05 on the Nasdaq Stock Market.

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