Furniture retailer snubs interest from potential buyers

Rent-A-Center is being selective about potential business opportunities.



According to sources, the nation’s largest rent-to-own company brushed off takeover interest from private equity firms HIG Capital and Lone Star Funds. The snub took place prior to turning down an offer of $800 million from buyout firm Vintage Capital earlier this month, according to Reuters.



HIG and Lone Star did not offer a price for the company. However, each said it would pay a premium for the business, sources said in the report.



Rent-A-Center, which struggled in 2016 amid falling sales, has remained on the radar of potential buyers. To reduce the likelihood that an investor gains unsolicited control of the company, the company adopted a stock-holder rights plan, or a so-called poison pill, in March.



The move evolved a month after activist investor Engaged Capital LLC, stepped up efforts to push the furniture retailer to sell itself. Engaged Capital LLC owns a 12.9% stake in the company.