CANFIELD Rainbow Rentals suffers loss, despite higher sales

CANFIELD -- Rainbow Rentals' earnings fell in the second quarter despite higher sales.
The Canfield-based rent-to-own chain earned $308,000, or 5 cents a share, compared with $476,000, or 8 cents a share, in the same quarter last year.
Earnings last quarter were hurt by $329,000 in severance costs related to the resignation of Larry Hendricks, chief operating officer, in May.
Rainbow said earnings also were held down by higher operating costs at stores and the costs of starting up four new stores in June.
Revenue last quarter was $25.8 million, compared with $24.8 million in the same quarter last year. Revenue at stores open at least a year was flat.
Wayland Russell, company chairman and chief executive, said the company is pleased with a marketing campaign introduced early this year but will be evaluating its business during planning sessions to try to increase profitability.
He said the new chief operating officer, Robert Harris, is starting new systems for recruiting and training store managers and developing regional managers.
In the past three months, personnel changes have been made at many stores that have been opened or acquired between 1999 and 2001 because these stores have performed below expectations, Russell said.
Rainbow operates 123 stores in 14 states.