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Starboard Value sends letter to Aaron's board 'expressing disappointment'

In the letter to the members of Aaron's board, Starboard Value said, "We are writing to express our extreme disappointment with the actions you have taken over the last several months. These actions, when viewed collectively, paint a picture of egregious board and management entrenchment, poor corporate governance, and a disdain for your shareholders. Even more concerning is the fact that such egregious actions have occurred while the financial performance of Aaron's core business continues to deteriorate rapidly as evidenced by last quarter's results, which yielded a 3.7% decline in same-store-sales and a 20.8% year-over-year decline in earnings-per-share. Simply put, these results are unacceptable. We are also deeply concerned with the recently announced acquisition of Progressive Finance Holdings. In light of the Company's recent poor operating results, we do not believe the current management team and Board of Directors have earned the trust of shareholders to execute on a transaction of this scale."