Rent-A-Center’s Acima Unit Names New Management

Rent-A-Center has announced a change in management for its virtual lease-to-own operation Acima, one month after reporting disappointing Q4 results.

As the Texas-based furniture, appliance and electronics rental chain said in a news release Tuesday (March 29), Aaron Allred has been named executive vice president in charge of Acima, the company he founded.

Allred has continued working for Rent-A-Center since the chain acquired Acima in February of last year and is a “significant shareholder.”

Learn more: Rent-A-Center Slammed as Rising Prices, End of Stimulus Cut Low-End Spending

Meanwhile, Rent-A-Center said it is reaffirming the consolidated first quarter and full year 2022 guidance it reported in February.

In reporting its numbers last month, Rent-A-Center pointed to a rise of inflation and the halt of government stimulus checks for dealing a blow to the “financially underserved” people that make up its customer base.

“The combined effect of significantly reduced government pandemic relief, decades-high rates of inflation, and supply chain disruptions impacted our target customers’ ability to access and afford durable goods,” CEO Mitch Fadel said in the company’s earnings release.

The company saw its revenues and same-store sales rise about 10.5% for the three months ending Dec. 31, while Acima saw a 5% increase in the value of transactions processed and a 200% rise in revenue.

Calling 2021 “a dynamic year” with “significant progress and some challenges,” the company cautioned investors that there was no silver bullet for ending last year’s demand problems.

“We anticipate these external headwinds will continue for the foreseeable future, resulting in year-over-year declines in revenue and earnings for 2022,” Fadel said, predicting that its unique market position and mission “will be even more important” as consumers continue to adapt to a post-pandemic environment without added help from the government.

See also: Rent-A-Center’s Acima Unveils Digital Retail Leasing Platform

Rent-A-Center acquired the Utah-based Acima in February 2021, part of what it said was an effort to give shoppers and merchants the smoothest lease-to-own (LTO) experience.

In November of last year, Rent-A-Center informed investors that Acima’s business practices were being investigated by a group of attorneys general from 39 states, but said it could not “predict the ultimate timing or outcome of this investigation.”