RTO pioneer Talley retires at Rent-A-Center
By Larry Thomas -- Furniture Today, October 14, 2001
PLANO, Texas — Ernest Talley, widely considered the father of the rent-to-own industry, has retired as chairman and chief executive officer of Rent-A-Center.
Rent-A-Center, North America's biggest RTO chain with revenues in the first half of $882.5 million, announced Talley's retirement last week and said it was effective immediately.
Mark Speese, 44, the company's president from 1994 to 1999 and a current board member, was named to replace the 66-year-old Talley.
"We would like to thank Ernie for his many contributions to Rent-A-Center's success over the years," Speese said. "He helped build the company into the sector's market leader."
Talley started with a single rent-to-own store in Wichita, Kan., in 1963. Eleven years later, he sold the company to RTO chain Remco, which he later sold to Thorn Americas/Rent-A-Center. He moved to Dallas and worked in commercial real estate until 1987, when he and his son founded a chain that eventually would be called Renters Choice.
In 1998, Renters Choice acquired Thorn Americas, uniting Renters Choice and Rent-A-Center. Later, the corporation took on the Rent-A-Center name.
In connection with Talley's retirement, Rent-A-Center's directors approved the company's purchase of $25 million worth of his stock. The company said it would buy $10 million worth of shares on Oct. 23 and the remainder Nov. 30. The purchase price will be at least $20 per share, but the actual price will be determined by the average closing price of the stock between Oct. 9 and Oct. 22.
At the same time it announced Talley's retirement, the company said third-quarter earnings probably will fall sharply because of lower gross margins and higher labor and advertising expenses.
Rent-A-Center earned 68 cents per share in last year's third fiscal quarter, and Wall Street analysts had been projecting about 66 cents per share this year. However, the company warned the figure will now be 50 cents to 52 cents per share.
The company is scheduled to announce third-quarter results Nov. 13.
| Talley |
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