Business
Regis Takes Immediate Action to Mitigate COVID-19 Impact
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 it has, over the last few weeks, taken various actions to mitigate the effect on its customers, franchisees, and corporate business operations from the national emergency that has arisen as a result of the COVID-19 virus.\n\n\nRegis has taken a number of proactive measures in its salon operations, including:\n\n\n\nRegis has temporarily suspended operations in certain areas as required by government mandate and has been adjusting days of service or reducing hours of operation at select company-owned salon locations where it supports the company’s liquidity initiatives.\n\n\nOnline check-in has been encouraged and utilized in order to reduce the number of customers in the waiting area of our salons at any given time.\n\n\nImplemented an increased focus on cleanliness and sanitization by increasing and adding to our current supply of cleaning and sanitizing materials to ensure our stylists can clean and disinfect the salons even more thoroughly throughout the course of each business day.\n\n\nClose coordination of activities and risk mitigation efforts with all franchisees.\n\n\n\nAt the corporate level, Regis’s actions include the following additional measures:\n\n\n\nRegis has drawn an additional $183 million from its current committed credit facility as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of the current uncertainty in the global economy. Taking into account Regis’s existing cash balance of approximately $61 million and the $183 million credit facility draw, Regis maintains approximately $244 million of liquidity at this time.\n\n\nIn recognition of the difficult challenges that may be faced by its franchisees, Regis has temporarily suspended the collection of ad fund fees from its franchisees from March 1st through June 30th of this year. Regis is hopeful this will enable our franchisees, many of whom are small business owners, to address potential hardships during this national emergency.\n\n\nRequested that all non-essential personnel at our office locations work remotely utilizing remote technologies the company launched several months ago.\n\n\nThoug...