Rent-A-Center has sold 14 of its Canadian stores to Easyhome Ltd., a merchandise leasing company in Canada. The sales of the locations in Alberta and Ontario are part of a larger effort to focus on its core U.S. stores and international expansion.
After the sale, there remains only one RAC location in Canada, which the company plans to keep in place, Dallas Business Journal reported.
"The performance of our core U.S. segment has been an area of heightened focus," Xavier Dominicis, a spokesman for the company, told Dallas Business Journal. "And to the extent that we consider continued international expansion, it will probably be in Central and South America. Those seem like more viable markets."
This spring apparel retailer American Eagle (NYSE:AEO) also announced it would expand into the South American market.
Terms of the sale were not disclosed. The retailer reported a loss in income for 2014. The results for the first quarter of 2015 were only slightly better, totaling $27.298 million, up from $27.266 million in the same quarter last year.
Also part of the deal, RAC purchased Easyhome stores in Florida, Missouri and New York. Under the deal, the companies signed a noncompete contract stating that RAC will not open any Canadian stores and Easyhome will not open any U.S. store over the next three years.
In the spring of 2014, RAC announced it would close 150 U.S. stores following a dismal first quarter that saw a 37 percent decline in profit.
-See this Dallas Business Journal article
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