Regis Corporation (NYSE: RGS),a leader in the haircare industry,
whose primary business is owning, operating and franchising hair salons,
today announced it will close approximately 600 nonperforming Company
owned SmartStyle salons on January 31, 2018.
"Our people are at the center of who we are and what we do," said Hugh
Sawyer, President and Chief Executive Officer of Regis Corporation. "As
a result, any decision that may affect our associates is carefully
considered prior to implementation. To retain the unique talent and
loyalty of our stylist community, we intend to offer many of our
impacted stylists and salon managers comparable positions in other
SmartStyle or Regis family of brands salons."
Mr. Sawyer continued, "Consistent with our multi-year strategic plan,
Regis is taking steps in 2018 to restructure our salon portfolio to
improve shareholder value and position the company for long-term growth.
Today's announcement, when combined with the previously announced sale
and subsequent franchising of our mall-based and international salons,
delivers on that commitment."
"This initiative is a positive step forward and we anticipate this
action will allow Regis to reallocate capital and human resources to
strategically grow our remaining 2,000 SmartStyle salons with creative
new offerings within Walmart," said Mr. Sawyer.
"Regis is committed to maintaining our leadership position in the salon
industry," added Mr. Sawyer. "As a result, we are making significant
strategic and operational changes to our business to increase customer
traffic, invest in new technologies, decrease non-strategic costs,
expand our franchise capabilities and create a new eco-system for
customer interaction."
The closure of this group of nonperforming company owned salons is
expected to be the only material reduction in Regis' SmartStyle salon
portfolio for the foreseeable future. "With SmartStyle and other Regis
brands continuing to maintain an extensive Company owned and franchised
footprint across the country, we believe this action will substantially
complete the restructuring of our nonperforming Company owned salon
portfolio during the first year of our strategic and operational
transformation," Mr. Sawyer concluded.
Announcement Conference Call and Webcast
Regis Corporation will host a conference call via webcast discussing
this announcement today, January 8, 2018, at 9 a.m., Central time.
Interested parties are invited to participate in the live webcast by
logging on to www.regiscorp.com
or by phone by dialing (888) 378-4439 and entering access code 2630624.
A replay of the presentation will be available later that day. The
replay phone number is (888) 203-1112, access code 2630624.
About Regis Corporation
Regis Corporation (RGS)
is a leader in beauty salons and cosmetology education. As of September
30, 2017, the Company owned, franchised or held ownership interests in
8,944 worldwide locations. Regis' corporate and franchised locations
operate under concepts such as Supercuts, SmartStyle, MasterCuts, Regis
Salons, Sassoon Salon, Cost Cutters, Roosters and First Choice
Haircutters. Regis maintains an ownership interest in Empire Education
Group in the U.S. For additional information about the Company,
including a reconciliation of certain non-GAAP financial information and
certain supplemental financial information, please visit the Investor
Information section of the corporate website at www.regiscorp.com.
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View source version on businesswire.com: http://www.businesswire.com/news/home/20180108005447/en/
Regis Corporation
Paul Dunn, 952-947-7915
VP, Finance and
Investor Relations