By Ben Fox Rubin
Aaron's Inc. said a special committee has started a broad review
of potential options for the rent-to-own retailer, adding to a
continuing evaluation of an unsolicited bid to buy the company.
The retailer last month received a roughly $2.3 billion bid for
the company from investment firm Vintage Capital Management. The
investor has a 9.5% stake in Aaron's, making it the company's
second-largest shareholder, according to FactSet.
In late February, Aaron's created a special committee of
independent directors to review the Vintage offer, with the help of
advisers. The board since retained Goldman Sachs Group Inc. as an
additional financial adviser, along with Blackstone Group L.P.
Aaron's, which rents and sells furniture, electronics and
appliances, has struggled during what it has called a difficult
economic environment for its low- to middle-income customers. The
company recently warned that it would slow new-store growth at both
its Aaron's and HomeSmart locations until business conditions
improve.
Vintage had said it privately offered to acquire Aaron's three
times since 2011, according to a recent letter to the board. Each
time it said it was "summarily ignored."
Write to Ben Fox Rubin at ben.rubin@wsj.com
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