APRO dropouts spur changes
By Michael J. Knell -- Furniture Today, October 25, 2004
Austin, Texas — After the loss of its two largest members, the Assn. of Progressive Rental Organizations is refocusing its services and programs.
Rent-A-Center and Rent-Way, the two largest rent-to-own merchants, have left APRO, saying the trade group no longer meets their needs. Bill Keese, APRO executive director, said the departure has prompted changes.
Most importantly, APRO has cut back on its biggest lobbying effort, the effort to persuade Congress to pass the Consumer Rental Purchase Agreement Act, which would make rental contracts with consumers enforceable over state lines.
Ron DeMoss, vice president and general counsel for Erie, Pa.-based Rent-Way, said APRO isn't structured to meet the needs of a company its 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.
Rent-Way has 754 stores and had revenues of $478.6 million during its most recent fiscal year. Plano, Texas-based Rent-A-Center has 2,863 company-owned stores and annual revenues of more than $1 billion.
The two publicly held companies account for about 50% of all U.S. rental locations.
Rent-A-Center also operates 311 franchise stores under the ColorTyme banner, a number of which are APRO members and are expected to remain in the organization.
Together, Rent-A-Center and Rent-Way paid about $800,000 annually in APRO membership dues, 40% of the association's annual budget of $2 million.
APRO has 348 remaining members who operate about 2,800 rental locations; 70% of them operate three or fewer stores. Keese said APRO's priorities for the coming year include building its membership and its annual conference and trade show, next set for Las Vegas July 25–28.
The group also has identified about 400 U.S. RTO companies that are not members, and Keese pledged "a very aggressive member campaign this year."
APRO will continue providing a host of management and support services for a number of state RTO associations.
In his letter, Rent-Way's DeMoss left the door open to cooperation with APRO. "Rent-Way remains committed to supporting rental dealers in a unified front to address regulatory, legal and public relation issues," he wrote. "Clearly, maintaining open communications and camaraderie are vital to achieving these shared interests."
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