Unassociated Document
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of
Report (Date of Earliest Event
Reported): June 29, 2010
AARON’S, INC.
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(Exact
name of Registrant as Specified in its
Charter)
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(State or other Jurisdiction of
Incorporation)
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(Commission File
Number)
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(IRS Employer
Identification No.)
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309 E. Paces Ferry Road, N.E.
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(Address of principal executive offices)
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(Zip code)
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Registrant’s
telephone number, including area code: (404) 231-0011
Not Applicable
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(Former
name or former address, if changed since last
report)
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Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction A.2.
below):
¨ Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
¨ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
¨ Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
¨ Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
ITEM
2.05 COSTS ASSOCIATED WITH EXIT OR DISPOSAL ACTIVITIES
In the
second quarter of 2010, Aaron’s, Inc. closed all but four of its Aaron’s Office
Furniture stores and plans to close the remaining stores by September 30,
2010. Aaron’s is exiting the office furniture market as management
believes there is a low probability of growth or profitability in the near
future and intends to concentrate future efforts on the sales and lease
ownership stores.
Aaron’s
anticipates recording approximately $9.5 million in charges for the write-down
and cost to dispose of office furniture, estimated future lease liabilities for
closed stores, the write-off of leaseholds, severance pay, and other associated
costs of closing the stores and winding down the division. The
Company anticipates recording over 70% of this amount as a charge to operating
expenses in the second quarter of 2010 and most of the remainder is estimated to
be incurred and recorded by the end of 2010.
Approximately
$4.6 million of the estimated charges related to the write-down and disposal
costs of office furniture to be taken in the second quarter of
2010. Approximately $2.0 million of the estimated charges relate to
closed store reserves incurred in the second quarter of 2010, with an additional
$1.3 million and $1.0 million in similar expenses estimated in the remainder of
2010 and in 2011, respectively.
The
estimates above are subject to change.
ITEM
2.06 MATERIAL IMPAIRMENTS
The
information set forth in Item 2.05 above related to the impairment of office
furniture assets is incorporated by reference herein in response to
this Item 2.06.
ITEM
7.01. REGULATION FD DISCLOSURE
On June
29, 2010, Aaron’s, Inc. issued a press release addressing the matters reported
above and updating its earnings guidance for 2010. The press release
is furnished herewith as Exhibit 99.1.
Item
9.01
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Financial
Statements and Exhibits.
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(d) Exhibits.
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99.1
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Aaron’s,
Inc. press release dated June 29,
2010.
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SIGNATURES
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
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AARON’S,
INC.
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By:
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/s/ Gilbert L. Danielson
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Gilbert
L. Danielson
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Executive
Vice President and Chief Financial
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Date: July
6, 2010
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Officer
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