Business
Rent-A-Center, Inc. Provides Update in Response to COVID-19
PLANO, Texas--(BUSINESS WIRE)-- Rent-A-Center, Inc. (the “Company”) (NASDAQ/NGS:RCII), a leader in the lease-to-own industry, today provided a business
About this update from Upbound Group, Inc.
[{"type":"text","content":" PLANO, Texas--(BUSINESS WIRE)--\nRent-A-Center, Inc. (the “Company”) (NASDAQ/NGS:RCII), a leader in the lease-to-own industry, today provided a business update in response to the COVID-19 pandemic.\n\n\n“The current crisis is unprecedented and fluid, and our hearts and prayers are with the many that are being impacted,” said Mitch Fadel, Chief Executive Officer. “We are committed to remaining a lifeline for products in need by our customers and the communities we serve. While following the guidelines of local, state and federal authorities, the majority of Rent-A-Center stores remain open as an essential business providing household necessities such as refrigerators, ranges, computers and smartphones. In our Preferred Lease business, we are continuing to serve customers in our retail partner locations that remain open and are broadening our offering for certain partners to enable ecommerce solutions.”\n\n\nOperational Update\n\n\nThe Company has implemented operational changes to improve the health and safety of our coworkers and customers, such as providing the option for curbside services for order processing and payments, by delivering merchandise to the customer’s front door without entering the household, and enabling virtual payment and collections activities for our coworkers. Customers continue to be able to shop online, complete a rental agreement, and make online payments from home. The full range of steps are outlined more fully in the attached link to rentacenter.com:\n\n\nhttps://www.rentacenter.com/the-latest-on-rentacenters-response-to-the-coronavirus\n\n\nFinancial Update\n\n\nMr. Fadel continued, “Rent-A-Center is a financially strong organization with a conservative balance sheet and we are also taking a number of precautionary steps given the uncertainty from COVID-19.”\n\n\nThese steps include having proactively drawn an additional $118 million on the Company’s revolving credit facility, which increased cash on the balance sheet to approximately $175 million. The Company has an additional $48 million available on its asset based revolver, and with the agreement of any lender who chooses to participate and the satisfaction of certain other conditions, its revolving credit facility may be increased by up to $100 million and its term loan facility may be increased by up to $150 million. All non-essential operat...