The former CEO of Delta Air Lines, who was forced out of his position nearly 15 years ago, has taken the job of president and CEO of Atlanta-based rent-to-own company Aaron's after serving in an interim basis since November.
Ronald Allen has been a member of Aaron's board since 1997, and has said in the past that he is enthusiastic about Aaron's future. Allen was not available for comment Wednesday.
Analysts who follow Aaron's said the move was not unexpected.
Rob Straus, a senior analyst with Gilford Securities, said Allen is a clear fit with Aaron's management culture and structure.
"I think he's a smart, capable executive whose experience with Aaron's will show from his past board position," Straus said.
When Allen left Delta in 1997, the company's board of directors had refused to renew his contract. He presided over the 1991 purchase of Pan-Am's European routes, and a cost-cutting plan in 1994. In a 1997 column in Delta's in-flight magazine, Allen wrote that "tough times and difficult decisions have strained the patience of Delta people and you, our customers, alike."
Maurice Worth, who was the interim CEO of Delta after Allen's departure, said he thought Allen would do fine at Aaron's.
"He's been around, and he knows business," Worth said.
Worth, who retired as Delta's chief operating officer, said he respects Allen. Straus noted that Aaron's is a dominant operator with "superb financial strength."
In a statement, Aaron's founder and chairman Charlie Loudermilk said he believes Allen has the "experience, energy and business acumen to lead Aaron’s into the next era of continued growth and expansion." His son, Robin Loudermilk, abruptly resigned as president and CEO in November, citing mental health concerns. Allen was named interim CEO the same day.
Aaron's has more than 1,900 stores in 48 countries and Canada. The company made $113.8 million in 2011.
About the Author
