Activist hedge fund Marcato Capital Management LP demanded in a letter on Tuesday, July 25, that Rent-A-Center start the process of selling itself. If the company doesn’t, the hedge fund threatened to throw out board members up for re-election at next year’s annual meeting, according to Reuters.
In the report, a letter from Marcato partner Shawn Badlani, said, “Unless Rent-A-Center promptly commences a full sale process, Marcato plans to initiate and/or support efforts to remove all incumbent directors who are up for election at the 2018 annual meeting.”
The letter added that at least one unidentified party interested in buying Rent-A-Center might raise its offer if management was ready to negotiate. It also warned directors not to stall.
Marcato isn’t alone in its quest. Hedge fund Engaged Capital has been urging Rent-A-Center to sell itself for months, arguing…