For the second time in as many months, Rent-A-Center (NASDAQ: RCII) is saying goodbye to a top-level executive. The company announced that CEO Robert Davis has resigned, effective immediately. He has been succeeded on an interim basis by company founder and Chairman Mark Speese until the board finds a replacement.
Rent-A-Center did not specify a reason for Davis' departure.
The announcement comes barely one month after the abrupt resignation of CFO Guy Constant, who was replaced on an interim basis by Maureen Short.
Neither Davis not Constant had served in their positions for very long. The former took up the CEO post in February 2014, after serving as the company's executive vice president of finance. Prior to that, he had held a number of executive positions with the rent-to-own specialist. He began his tenure at Rent-A-Center in 1993.
Speese has plenty of experience at the top of Rent-A-Center. In addition to founding the company, he had a long tenure as CEO from late 2001 until early 2014. He has been chairman of the board since October 2001.
He will face numerous challenges as interim CEO. In its third quarter, Rent-A-Center posted a 12% year-over-year revenue decline to $694 million, while net profit dropped by a steep 76% to just under $6 million. The company's stock price took a hard hit following those results, and even though it has recovered somewhat, it's still down by more than 21% over the past year.
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Eric Volkman has no position in any stocks mentioned.