Rent-A-Center, Rent-Way leave APRO
Michael Knell -- Furniture Today, October 14, 2004
AUSTIN, Texas -- Rent-A-Center and Rent-Way, the two largest rent-to-own merchants have left the Assn. of Progressive Rental Organizations, saying the industry group no longer meets their needs.
Ron DeMoss, vice president and general counsel for the Erie, Pa.-based Rent-Way, said APRO isn't structured to serve of a company their size.
"Rather than being a direct result of any single concern, issue or disagreement, we see this as an evolutionary process made inevitable by reason of the significant difference in the size of the largest rental companies as compared to all the others," he said in a letter of resignation addressed to APRO President Shannon Strunk and Executive Director Bill Keese.
Rent-Way operates 754 stores in 33 states and had sales of $478.6 million during its most recent fiscal year. Rent-A-Center, the largest RTO home furnishings merchant, has 2,863 company owned stores in the United States, Canada and Puerto Rico with annual sales of more than $1 billion. The Plano, Texas based company also operates 311 franchise stores under the ColorTyme banner.
Between them, the two companies account for about 50% of the rental locations in the U.S.
DeMoss said Rent-Way didn't resign because Rent-A-Center did, although the latter's decision did serve as a catalyst. "Our decision has been under consideration for some time," he said.
Calls to Rent-A-Center were not returned before press time.
RTO Online, a rental industry e-zine, said that Rent-A-Center and Rent-Way together account for about $800,000 annually in APRO membership dues — 40% of the association's annual budget of $2 million.
In a written statement, Strunk said the resignations were received at the beginning of the association's annual strategic planning sessions, which are being held this week here in Austin.
"Rent-A-Center's and Rent-Way's actions came at an opportune time in light of the scheduled planning session and board meeting," Strunk said, adding that the board is currently revising its budgets and goals to ensure the association can continue to serve its remaining 348 members, who operate a total of approximately 2,800 rental locations.
"The board has been able to make budget revisions without making any significant changes in member services," he said.
Also of concern is the association's continuing effort to persuade Congress to pass the Consumer Rental Purchase Agreement Act, which is pending in the Senate, although passage is unlikely in this session. APRO's primary mission for the past 20 years or so has been the passage of federal legislation to regulate rent-to-own consistently in all states.
RTO Online suggested without the support of the nation's two largest rental merchants, the effort could be jeopardized. However, APRO's Strunk told the e-zine the effort will continue. "We are addressing future legislative sessions in our strategic planning."
In his letter, DeMoss left the door open to future co-operation between Rent-Way and APRO on key issues. "Rent-Way remains committed to supporting rental dealers in a unified front to address regulatory, legal and public relation issues. Clearly maintaining open communications and camaraderie are vital to achieving these shared interests," he said. "We look forward to that relationship."
Strunk is also confident that despite their departure, the association will continue to thrive.
"APRO's strength has always come from its active and involved membership and the board has spent the past several days devising strategies for increasing and strengthening the rental dealer membership base," he said.
Rent-A-Center's profits surge 25%
10/26/2009Rent-A-Center, Rent-Way leave RTO group
10/13/2004APRO dropouts spur changes
10/24/2004
