Winmark Corporation Announces Run-off of Leasing Portfolio

Rhea-AI Summary

Winmark Corporation (Nasdaq: WINA) has announced it will stop soliciting new leasing customers and will instead focus on a run-off strategy for its middle-market leasing portfolio. CEO Brett D. Heffes stated this move aims to enhance the company’s leadership in the resale market, maximizing shareholder value. Winmark operates a franchising business in sustainability, with 1,264 franchises across five major brands as of March 27, 2021, and over 2,000 available territories for future franchises.

Positive

• Strategic focus on enhancing leadership in the growing resale market.
• Current operation of 1,264 franchises, indicating a solid business foundation.

Negative

• Discontinuation of new leasing customer solicitations may impact revenue streams.
• Transition to run-off strategy could involve financial risks and uncertainties.

Winmark Corporation (Nasdaq: WINA) announced today that it will no longer solicit new leasing customers and will pursue an orderly run-off for its middle-market leasing portfolio. Brett D. Heffes, Chairman and Chief Executive Officer stated, “Going forward, we intend to focus all of our resources on enhancing our leadership position in the large and growing resale market. We have determined that running off the existing portfolio will maximize value for our shareholders.”

Winmark, the Resale Company^TM, is a nationally recognized franchising business focused on sustainability and small business formation. We champion and guide entrepreneurs interested in operating one of our award winning resale franchises: Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore® and Music Go Round®. At March 27, 2021, there were 1,264 franchises in operation and over 2,000 available territories. An additional 32 franchises have been awarded but are not open.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to future events or the future financial performance of the Company. Such forward-looking statements are only predictions or statements of intention subject to risks and uncertainties and actual events or results could differ materially from those anticipated. Because actual result may differ, shareholders and prospective investors are cautioned not to place undue reliance on such forward-looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210514005529/en/

FAQ

What recent changes has Winmark Corporation (WINA) announced regarding their leasing business?

Winmark Corporation announced it will no longer solicit new leasing customers, focusing instead on an orderly run-off of its middle-market leasing portfolio.

How many franchises does Winmark operate as of March 2021?

As of March 27, 2021, Winmark operates 1,264 franchises.

What is Winmark's strategy moving forward in the resale market?

Winmark plans to focus all resources on enhancing its leadership position in the resale market.

What brands does Winmark franchise?

Winmark franchises several brands, including Plato’s Closet®, Once Upon A Child®, Play It Again Sports®, Style Encore®, and Music Go Round®.

How many territories are available for Winmark's franchises?

There are over 2,000 available territories for Winmark's franchises.