Michael J. Knell — Furniture Today,
\nEDMONTON, Alberta\u00c2\u00a0— Rentcash intends to sell or spin off its Insta-rent division, which rents furniture,
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\nappliances, electronics and computers with or without an option to purchase, primarily through kiosks in The Brick and United Furniture stores across Canada.<\/p>\n
\u00e2\u20ac\u0153We believe this will provide better clarity on both business models and have a positive long-term impact on shareholder value,\u00e2\u20ac\u009d said Rentcash Chairman and CEO Gordon Reykdal.<\/p>\n
Insta-rent\u00e2\u20ac\u2122s 92 locations include freestanding stores, some of which are set to close. Reykdal said the rental division is exploring opening some standalone supercenters to help move excess inventory.<\/p>\n
Rentcash is a provider of payday advance loans, with some 388 stores nationwide operating as The Cash Store and Insta-loan.<\/p>\n
The Insta-rent division, under the leadership since April of President and Chief Operating Officer Bill Johnson, a rent-to-own industry veteran, has focused on improving the performance of existing stores, and on growing through its strategic arrangement with The Brick Group, one of Canada\u00e2\u20ac\u2122s largest home goods retailer.<\/p>\n
In the year ended June 30, Insta-rent was a drag on Rentcash\u00e2\u20ac\u2122s profitability, although Insta-rent revenues nearly doubled to C$24.1 million from 2012\u00e2\u20ac\u2122s C$12.9 million.<\/p>\n
The net loss deepened to C$3 million from C$1.9 million, which Reykdal attributed to start-up costs for new stores opened in the year.<\/p>\n
He said revenues at the 35 rental stores open for the entire fiscal year shot up 26%, although that figure eased in the fourth quarter as the company restricted new rentals and focused on improving the quality of its customers.<\/p>\n
In the fourth quarter, Insta-rent\u00e2\u20ac\u2122s revenues jumped 64% to C$6.2 million.<\/p>\n
In total, Rentcash had revenues of C$154.2 million in its latest fiscal year, double the prior year\u00e2\u20ac\u2122s C$76.8 million. Yearly net earnings showed similar improvement, coming in at C$14 million or 67 Canadian cents per share, versus C$6.8 million or 38 cents per share in the prior year.<\/p>\n","protected":false},"excerpt":{"rendered":"
Michael J. Knell — Furniture Today, EDMONTON, Alberta\u00c2\u00a0— Rentcash intends to sell or spin off its Insta-rent division, which rents furniture,<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-1895","post","type-post","status-publish","format-standard","hentry","category-furniture-world-news"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/1895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/comments?post=1895"}],"version-history":[{"count":0,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/posts\/1895\/revisions"}],"wp:attachment":[{"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/media?parent=1895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/categories?post=1895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/indonesia-furniture.com\/articles\/wp-json\/wp\/v2\/tags?post=1895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}