Business
Regis Announces Significant Actions To Reduce G&A Costs As The Company Continues Its Transition To A Fully Franchised Model
MINNEAPOLIS--(BUSINESS WIRE)-- Regis Corporation (NYSE: RGS), a leader in the haircare industry, whose primary business is franchising, owning, and operating
About this update from Regis Corporation
[{"type":"text","content":" MINNEAPOLIS--(BUSINESS WIRE)--\nRegis Corporation (NYSE: RGS), a leader in the haircare industry, whose primary business is franchising, owning, and operating technology enabled hair salons, today announced the completion of certain restructuring actions to improve its financial performance and further align costs with the company’s transition to a fully franchised business model.\n\n\nRegis has eliminated administrative costs and personnel substantially required to support the company’s historical portfolio of owned and operated salons. The restructuring actions, which reduces the Company’s administration staff by approximately 290 positions, including 15 contractors, across the US and Canada, is expected to result in approximately $18.7 million of annualized general and administrative expense savings as the company accelerates its multi-year transformation.\n\n\n“We are pleased that we are at a point in our transformation where we can continue efforts underway to re-engineer our cost structure. Although this phase of our transformation is certainly difficult, it is necessary in order to properly allocate capital and human resources to support investments in our rapidly growing franchise business,” said Hugh Sawyer, President and Chief Executive Officer of Regis Corporation. “We have been successful in transferring salons to franchisees at a faster rate than we originally expected, which allowed us to take these actions early in the new calendar year. While redesigning our cost structure is an important aspect of our strategy, we recognize these changes represent a deeply personal impact to our employees and their families and we are grateful for the many contributions they have made to the historical achievements of Regis.”\n\n\nAbout Regis Corporation\nRegis Corporation (NYSE:RGS) is a leader in beauty salons and cosmetology education. As of September 30, 2019, the Company franchised, owned or held ownership interests in 7,092 worldwide locations. Regis' franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, 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 info...