Furniture retailer adopts poison pill

Rent-A-Center Inc. has taken action to reduce the likelihood that an investor gains unsolicited control of the company.



The nation's largest rent-to-own operator has adopted a stockholder rights plan, or a so-called poison pill, that would become exercisable if a group buys 15% or more of its outstanding shares.



The move comes a month after activist investor Engaged Capital LLC, which owns a 12.9% stake in the company, stepped up efforts to push the furniture retailer, which has been struggling with slumping sales, to sell itself.



“The Rights Plan is also designed to protect Rent-A-Center stockholders by reducing the likelihood that any person or group would gain control of the company through open market accumulation without appropriately compensating its stockholders for such control or providing the Board sufficient time to make informed judgments,” Rent-A-Center stated.