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AARON RENTS, INC. ACQUIRES BROYHILL RENTAL CONTRACTS

 AARON RENTS, INC. ACQUIRES BROYHILL RENTAL CONTRACTS
 ATLANTA, June 16 /PRNewswire/ -- Aaron Rents, Inc. (NASDAQ: ARON), the nation's largest furniture rental and sales company, today announced the acquisition of rental contracts of Broyhill Furniture Rental in Nashville, Tenn., and Charlotte, N.C.
 The contracts were acquired from Broyhill Investments, Inc. of Lenoir, N.C., for approximately $500,000 in cash, said R. Charles Loudermilk Sr., chairman and chief executive officer of Aaron Rents, Inc. The Broyhill contracts will be assigned to Aaron Rents stores in these two cities.
 "Our strategy is to build volume in markets where Aaron Rents already has a strong presence," Loudermilk explained. "The addition of the Broyhill contracts will increase our per store volume in Nashville and Charlotte, and should substantially increase our earnings in these two cities."
 The company's improved performance in its last fiscal year benefited from the program of expanding in strong market areas while selling, swapping or closing stores failing to meet profit objectives. Net earnings for the year ended March 31 increased to $3.1 million, or $.72 per share compared to $1.0 million, or $.23 per share the previous year.
 Aaron's Rent-To-Own(R), an operating division of Aaron Rents, Inc., last week announced the opening of its first rent-to-own franchise store and the awarding of two more rent-to-own franchises, while the company disclosed plans to expand its company-owned rent-to-own stores at a rate of one per month.
 The first Aaron's Rent-To-Own(R) franchise store opened June 1 in Hammond, La., and franchises have been awarded for Augusta, Ga., and the Richmond, Va., area. Franchises are being awarded in smaller markets offering the greatest growth potential, while company-owned stores are located in larger market areas.
 Due to profitable growth of company-owned rent-to-own stores, now numbering 31, Aaron Rents will open a minimum of 10 more company-owned rent-to-own stores in major metropolitan areas by the close of the current fiscal year on March 31, 1993, Loudermilk announced last week.
 Studies by the Association of Progressive Rental Organizations (APRO) show that 30 percent of Americans are prospective rent-to-own customers, but only about one-fourth of the market has been captured. The Aaron Rents strategy is to increase market penetration with the advantages of the company's own furniture manufacturing division and a unique 12-month rent-to-own program.
 Aaron Rents, Inc., based in Atlanta, operates 150 stores in 22 states for the sale and rental of residential and office furniture and equipment. The company produces furniture at five plants in Georgia and Florida and recently opened its first business equipment rental store in Atlanta.
 -0- 6/16/92
 /CONTACT: Gilbert L. Danielson, vice president-Finance and chief financial officer of Aaron Rents, 404-231-0011/
 (ARON) CO: Aaron Rents, Inc.; Broyhill Furniture Rental; Broyhill Investments,
 Inc. ST: Georgia, Tennessee, North Carolina IN: REA SU: TNM


BR-BN -- AT003 -- 0538 06/16/92 09:39 EDT
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Publication:PR Newswire
Date:Jun 16, 1992
Words:475
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