Aaron’s cuts close to 60 corporate jobs in Cobb

Atlanta-based Aaron’s says it laid off close to 60 people from its metro Atlanta corporate headquarters last week.

The rent-to-own giant, which has been struggling to regain foot traffic in its stores since the end of the recession, said the move was necessary to “achieve greater efficiency in our expenses” as it faced continued revenue pressures.

The positions came from the company’s offices in Cobb County’s Galleria area, Kennesaw and Marietta.

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Atlanta-based Aaron’s announced in July it has sold its HomeSmart division. Aaron’s also cut close to 60 corporate jobs at its Cobb County headquarters last week.
“As we mentioned during the second quarter earnings call in July, core business results were mixed in the quarter,” CEO John Robinson said in a statement on Tuesday. “During the quarter, the business showed some positive trends; however, revenues were pressured. Given these challenges, we’ve taken action to realign our expense structure in our Store Support Centers.

“We made every effort to avoid directly impacting associate jobs, but after close evaluation, have eliminated fewer than 60 positions,” Robinson said. “These decisions are never taken lightly and this process is something that we tried to avoid. However, we are focused on strengthening the business for the long term. We believe these efforts best support our business strategy and will strengthen Aaron’s for the future.”

The company said it has offered the employees severance packages, but did not provide further details.

The retail sector has struggled to regain its footing since the recession’s end in 2011. While the stock market has rebounded and unemployment has dropped nationally to 4.9 percent, retail growth has been sluggish or non-existent for most of the sector.

Aaron’s sales fell 5.4 percent to $485.5 million in the second quarter of this year compared to $513.1 million during the same period in 2015, the company said in July.

Same-store revenues at company-operated locations decreased 1.2 percent during the second quarter and foot traffic dropped 1.1 percent.

In July, Aaron’s also announced it had sold its HomeSmart division. The stores sold for a reported $35 million in cash.

Reader Comments 0

9 comments
Tcope
Tcope

Just sold a subsidiary for $35 million, yet need to lay off 60 corporate employees. Hmmm? Maybe the charging people with bad credit high interest rates for household goods is not what it used to be?

BurroughstonBroch
BurroughstonBroch

This news is over a month old now, so why post it in a blog? A publish or perish day at the AJC?

Ficklefan
Ficklefan

This ship, founded upon an economic model that does not work (assuming that it ever really did work), will sink, and it will sink very quickly. Corporate slugs and mid level minions, better start looking and start looking fast and get the heck out of there. Your top and senior level management has already protected itself, and you are definitely not part of the protection plan. 

SaulK
SaulK

why rent a bunch of overpriced junk there when you can buy new for 1/5 the cost??? hello???

PJ25
PJ25

@CedricM Because the majority of the middle class is financially stupid and only cares about what their payment is going to be.

Ask anyone who sells anything that can be financed and they'll tell you same thing.  This entire recovery is nothing more than a mirage created by cheap long term financing for the financially ignorant.

Thirty percent of new car buyers finance between 61 and 96 months.  Twenty percent of new car buyers are sub-prime.

Rooms to Go has 100 month financing.  Lowe's has 84 months @ 6.9%, the list goes on and on.  The other day some company was advertising 84 month terms on mattresses for crying out loud. 

Like-It-Is
Like-It-Is

Get a sofa at Aaron's for 10x what it costs anyplace else.

Stuttering Erick
Stuttering Erick

I gotta know, who the he11 rents from Aaron's when EVERYONE offers free financing for 6-12-18 months on PURCHASES!!!!????