Rent-A-Center Inc. said Feb. 20 that it will focus on improvement areas including a significant cost-savings plan as part of its strategic plan.
The Texas-based rent-to-own retailer began reviewing strategic and financial alternatives in October 2017 in a bid to maximize shareholder value.
Most recently, Rent-A-Center updated the value proposition in its core business, which is now aimed at improving traffic trends, while the value proposition in its Acceptance NOW business unit will focus on improved return on investment through a shorter payback period and higher ownership levels.
The retailer also seeks to refranchise physical stores to maintain and grow its presence while using proceeds to pay down debt.
Rent-A-Center, through the help of business consulting firm AlixPartners, identified about $100 million of annualized EBITDA and working capital opportunities. The company added that it is expected to have a tax benefit of about $200 million over the next three years as a result of the new tax reform.