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NB Activist Restarts Battle

Newport Beach-based Engaged Capital LLC renewed its battle against Rent-A-Center Inc. (NASDAQ: RCII).

“We are outraged to learn” that the board of directors of Rent-A-Center rejected expressions of takeover interest from two private equity firms that were not disclosed to shareholders, Engaged Capital said in a statement.

Rent-A-Center “snubbed” takeover interest from private equity firms HIG Capital and Lone Star Funds before a $15 a share offer from Vintage Capital was rejected earlier this month, Reuters reported yesterday, citing unidentified people familiar with the matter.

Engaged Capital won a proxy battle in June to place three nominees onto the seven-member board of directors. The activist investment firm begun in 2012 by Glenn Welling began buying shares late last year of Plano, Texas-based Rent-A-Center and is now its largest shareholder with a 20.5% stake that includes swaps.

“We are concerned that the four remaining incumbent directors are willfully ignoring the voices of the majority of shareholders to continue the blind pursuit of the company’s risky turnaround plan,” Engaged Capital said.

A statement from the Rent-A-Center board said it intends to quickly implement its turnaround plan.

“Today, the Rent-A-Center board and management team are expeditiously executing the company’s strategic plan to restore growth and improve profitability,” said the statement. “The board remains open-minded and regularly reviews the company’s strategic priorities and opportunities.”

Shares of Rent-A-Center rose today 1.5% to $12.56. Shares are up about 62% from their 52-week low in February when Engaged Capital announced its battle.

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Peter J. Brennan
Peter J. Brennan
With four decades of experience in journalism, Peter J. Brennan has built a career that spans diverse news topics and global coverage. From reporting on wars, narcotics trafficking, and natural disasters to analyzing business and financial markets, Peter’s work reflects a commitment to impactful storytelling. Peter’s association with the Orange County Business Journal began in 1997, where he worked until 2000 before moving to Bloomberg News. During his 15 years at Bloomberg, his reporting often influenced financial markets, with headlines and articles moving the market caps of major companies by hundreds of millions of dollars. In 2017, Peter returned to the Orange County Business Journal as Financial Editor, bringing his heavy business industry expertise. Over the years, he advanced to Executive Editor and, in 2024, was named Editor-in-Chief. Peter’s work has been featured in prestigious publications such as The New York Times and The Washington Post, and he has appeared on CNN, CBC, BBC, and Bloomberg TV. A Kiplinger Fellowship recipient at The Ohio State University, he leads the Business Journal with a dedication to uncovering stories that matter and shaping the local business community and beyond.
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