Aaron's Broadens Review of Potential Options

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."

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