Aaron Rents, Inc., the nation's leader in the rental, rental purchase and specialty retailing of residential and office furniture, consumer electronics and home appliances, today announced the startup of a new office and residential furniture manufacturing plant in Sugarland, Texas. This is the Company's 11th manufacturing facility.

The plant in suburban Houston enables the Company to increase its furniture manufacturing capacity to meet the demands of the growing number of stores in the Western United States. The Company has nearly 100 stores in Texas alone.

"This new plant will facilitate our growth in the West with faster delivery to our stores in Texas, the other states in the region and in California," said R. Charles Loudermilk, Sr., Chairman and Chief Executive Officer.

By early December, the plant should be in full production with approximately 100 employees at work, Mr. Loudermilk said. "We also plan over the next year to double the size of the building to approximately 300,000 square feet by adding on a new distribution center for Aaron's Rental Purchase stores. This will support our continuing strong growth in the region."

The Company plans to open its seventh distribution center in Winston- Salem, N.C. in early December and expects to add distribution centers in the Kansas City and Phoenix areas during the next year, Mr. Loudermilk said.

"Our nationwide network of distribution centers is a key part of our strategy to maintain competitive advantages in our markets," Mr. Loudermilk said. "In the rental purchase business, same-day or next-day delivery is demanded by the customer, and our system of distribution centers, combined with our fleet of delivery trucks, enables us to meet that demand. Our Company is the only one in the industry with its own distribution and manufacturing capabilities. This is one of the major factors behind our ability to open approximately 80 new stores by the end of this year, a more than 20 percent increase in store count over last year."

The Company on September 28 announced its initial expansion outside the U.S. mainland with the acquisition of a privately held chain of 10 rental purchase stores in the Commonwealth of Puerto Rico, considered an excellent market for the Aaron's Rental Purchase concept. Plans are to open five more stores in Puerto Rico within the next 18 months.

Aaron Rents, Inc., based in Atlanta, currently has more than 530 Company- operated and franchised stores in 39 states and Puerto Rico for the rental and sale of residential and office furniture, accessories, consumer electronics and household appliances. The Company manufactures furniture, bedding and accessories at 11 facilities in four states.


Franchise News Release: Atlanta, GA - (Oct-4-2000)

Aaron Rents Begins Production at Texas Furniture Manufacturing Facility (10/00)


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