Benzinga | Jun 1, 2021 06:02AM EDT

CURO Subsidiary Flexiti Signs LFL Group To 10-Year Exclusive Point-of-Sale Consumer Financing Agreement

LFL Group is Canada's largest home furnishing retailer with over 300 outlets

CURO Group Holdings Corp. (NYSE:CURO) ("CURO" or the "Company"), a tech-enabled, multi-channel and multi-product consumer finance company serving a wide range of non-prime and prime consumers in the U.S. and Canada and a market leader in the industry based on revenue, today announced that Flexiti, the company's wholly-owned subsidiary, signed LFL Group (TSX:LNF) ("LFL"), Canada's largest home furnishings retailer, to a 10-year exclusive point-of-sale ("POS") consumer financing agreement (the "Agreement").

LFL, also known as Leon's Furniture Limited, operates more than 300 stores across Canada under several banners including Leon's, The Brick, The Brick Mattress Store, The Brick Outlet, Furniture.ca, Appliance Canada and Midnorthern Appliance. The Agreement includes all LFL retail banners and covers both in-store and online sales. The Agreement expands the strong and established relationship between the two companies: the FlexitiCard(r) has been accepted at The Brick since 2018 and has been used to apply and buy online at thebrick.com and leons.ca since 2019. Flexiti estimates the POS lending relationship will generate more than C$800 million in annual financed sales. Flexiti believes the Agreement, which begins on July 1, 2021, positions the company as the largest provider of POS financing solutions in Canada. As part of the 10-year exclusive agreement, LFL was granted a warrant to purchase 19.9% of Flexiti that is only exercisable if Flexiti becomes a separate publicly traded entity or if it undergoes a change of control.1

"We are thrilled to announce the expanded partnership between Flexiti and LFL Group," said Peter Kalen, founder and Chief Executive Officer of Flexiti. "For three years, we have seen our FlexitiCard customers making purchases at The Brick and Leon's. Now, customers at LFL stores and ecommerce sites can apply and obtain access to the same 0% financing options that LFL has pioneered for its customers. It is an incredible honor to partner with LFL's management team, who have delivered leading-edge financing solutions to their customers that provide both exceptional value and affordability."

Edward Leon, Chief Executive Officer of LFL Group, said, "At Leon's Furniture Limited, we have always embraced innovation and strived for better ways to serve our customers. This partnership with Flexiti is a continuation of that commitment. With our large network of retail stores across Canada as well as our successful ecommerce sites, we are very pleased to bring a best-in-class, omni-channel financing experience to our customers to make shopping easier and more affordable. We are looking forward to deepening our partnership with the team at Flexiti."

"We are excited to see the scope of Flexiti's relationship with LFL grow meaningfully through this long-term exclusive agreement that will deliver Flexiti's innovative financing solutions to an even greater number of Canadians," said Don Gayhardt, CURO's Chief Executive Officer. "When CURO announced the Flexiti acquisition earlier this year, we said that a key benefit of the transaction would be enhancing our growth profile in Canada, a key market for us. We also expressed our deep commitment to continue providing Flexiti's merchants with industry-leading service and solutions to improve sales and customer satisfaction. This 10-year Agreement with LFL demonstrates the strength of Flexiti's offering and the considerable opportunity in the POS and buy-now-pay-later space and Flexiti's ability to build strong long-term relationships and execute with its merchant partners."

With 2020 total system-wide sales of C$2.7 billion, LFL is one of the largest furniture and appliance retailers in North America. LFL's coast-to-coast retail footprint includes stores in all of Canada's largest population centers. Founded in 1909, LFL has served the home furnishings needs of Canadian consumers for over 100 years. For the last three years, LFL has prioritized the development of a world-class, scalable, online option that allows customers to shop when, where and how they want. ecommerce will remain a centerpiece of LFL's omni-channel approach, offering customers the best of both worlds.