Rentway agrees to settle lawsuit
By Furniture Today Staff -- Furniture Today, March 23, 2003
Erie, Pa. — Rent-to-own retailer Rent-Way has agreed to settle for $25 million a class-action lawsuit alleging falsified financial statements. The agreement must be approved by a federal court.
The company said the settlement would consist of $21 million in cash — $11 million of which will be funded from insurance proceeds — and $4 million in two-year notes at 6% interest. The settlement is conditioned on the company's restructuring of its bank debt by July 31.
The suit, filed in the Western District of Pennsylvania on behalf of Rent-Way shareholders, claimed the company's financial statements in 1998, 1999 and 2000 were materially false because of accounting irregularities. The company restated its results for those years, saying that operating expenses had been improperly reduced by $129 million.
"This settlement is an important step forward for Rent-Way," said William Morgenstern, the company's chairman and chief executive officer. "We are now better positioned to refinance our outstanding bank debt on more favorable terms. This will allow us to execute our business plan at a significantly lower cost."
Rent-Way had debt of $285 million on Dec. 31. It had 2002 revenue of $626.4 million, and operates 759 stores in 33 states, renting merchandise including furniture, appliances, computers and other consumer electronics.
-
Simmons misses $7.9M interest payment
Jan 26, 2009 -
Natura World to restructure
Jan 10, 2012 -
Employees sue Berkline over sudden plant closure
Apr 12, 2011 -
Simmons Co. misses $7.9 million interest payment
Jan 16, 2009
Specialty retailer LoveSac introduces new store design
Belfort Furniture, Lawrance Furniture are NHFA Retailers of Year
Kincaid Furniture honors Jimmy and Rosalynn Carter for Habitat work
Furniture, mattress sales boost Conn's sales 37.6% in recent quarter
Havertys' new ad campaign plays up customers' finer qualities
Featured Company
-
Brandwise Inc.
Brandwise serves a model - not just an industry - by integrating, automating, and optimizing the entire sales channel, from wholesale Suppliers to their Reps and the Retailers they service. In short, our software helps Reps and Suppliers sell more and create... more
VIEW ALL GALLERIES
