Ft. Lauderdale, Fla.-based NationsRent announced last week that it received approval from the U.S. Bankruptcy Court to continue its strategic alliance with the Lowe's Companies Inc., the world's second largest home improvement retailer, as NationsRent moves through the Chapter 11 reorganization process.
NationsRent sought early approval from the U.S. Bankruptcy Court for the District of Delaware to continue the scheduled opening of rental centers in Lowe's Home Improvement Warehouse stores. Approval of the motion reflects the support NationsRent has received from its senior lenders, as well as the official committee of the unsecured creditors.
NationsRent currently operates 47 rental centers at Lowe's stores and plans to open 23 additional centers at Lowe's this year. NationsRent and Lowe's entered into a strategic alliance in October 2000, which created rental centers within Lowe's stores.
Philip Petrocelli, president and CEO of the NationsRent said, "This is really a win-win situation for everyone involved: NationsRent, Lowe's and our respective customers. The 'store-within-a-store' structure gives Lowe's customers easy access to NationsRent's full line of rental equipment."
NationsRent, No. 4 on the RER 100, filed for Chapter 11 protection in the U.S. Bankruptcy Court in the District of Delaware on December 17, 2001. In February, NationsRent named Petrocelli as president and CEO on an interim basis and is currently conducting a search for a permanent CEO. Additionally, the company recently announced the court's final approval of $55 million debtor-in-possession financing led by Fleet National Bank.
