MINNEAPOLIS--(BUSINESS WIRE)--Regis Corporation (NYSE: RGS), a leader in the haircare industry, whose primary business is franchising, owning, and operating hair salons, announced today they have entered into an agreement for the sale and conversion of an additional 190 company-owned salons to its asset-light franchise portfolio substantially located in the state of Ohio and surrounding areas to the Super C Group. The salons being sold and refranchised are currently branded as Famous Hair®, Best Cuts®, Fiesta Salons®, First Choice Haircutters® and BoRics Hair Care®. These salons will be remodeled and converted to Supercuts® and Cost Cutters® over the next several months. The transitions will begin in the Cleveland area in June. Supercuts, the Official Hair Salon of Major League Baseball®, expects to initiate a new marketing campaign during All Star Week®, which is being held in Cleveland July 5-9, 2019.
“We look forward to growing our existing relationship with the Super C Group. Our partnership with them allows us to bring critical scale to our Supercuts and Cost Cutters brands in the Ohio market. The Super C Group not only brings experience with the Supercuts brand but also has a proven history of strong performance with service-oriented retail companies,” commented Eric Bakken, Executive Vice President, President - Franchise of Regis Corporation.
Earlier this year, the Super C Group purchased and successfully converted sixty-six salons in Michigan to Supercuts, making them the largest Supercuts franchisee in the Midwest. This agreement makes Super C the largest Cost Cutters franchisee for Regis.
“We are excited about our entry into the Ohio market. Our strong partnership with Regis and our substantial experience in multiunit service-oriented retail positions us to be a premier employer in the hair salon business," said Mike Sarafa Managing Partner, Super C Group. "The focus in these salons will be the relationships with new and long-standing clientele. Our aim, over time, is to build a culture of service that will transform the industry." Mr. Sarafa added, “Super C intends to retain all the salon employees and to hire key field leaders.”
“Partnering with proven multi-unit operators, like the Super C Group, allows us to effectively transition corporate salons to franchisees and strengthens our franchise portfolio in circumstances where we believe it will add to shareholder value and support our evolving strategy for our business,” Mr. Bakken concluded.
About Regis Corporation
Regis Corporation (NYSE:RGS) is a
leader in beauty salons and cosmetology education. As of March 31, 2019,
the Company franchised, owned or held ownership interests in 7,838
worldwide locations. Regis’ corporate and franchised locations operate
under concepts such as Supercuts®, SmartStyle®, MasterCuts®, Regis
Salons®, Sassoon®, 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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About the Super C Group, LLC
Super C Group, LLC is a
growth-oriented company devoted to the success of its employees, and the
salons that serve its clientele. Super C Group's locations strive to
create an exceptional customer experience from start to finish through a
culture that is friendly, trendy, high energy and professional. Its team
of leadership professionals leverages its more than 185 combined years
of experience in the banking industry, hospitality industry, wireless
and other retail industries to drive growth in a demanding and
competitive environment.
Safe Harbor Statement
This press release contains or may
contain “forward-looking statements” within the meaning of the federal
securities laws, including statements concerning anticipated future
events and expectations that are not historical facts. These
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The
forward-looking statements in this document reflect management’s best
judgment at the time they are made, but all such statements are subject
to numerous risks and uncertainties, which could cause actual results to
differ materially from those expressed in or implied by the statements
herein. Such forward-looking statements are often identified herein by
use of words including, but not limited to, “may,” “believe,” “project,”
“forecast,” “expect,” “estimate,” “anticipate,” and “plan.” In addition,
the following factors could affect the Company’s actual results and
cause such results to differ materially from those expressed in
forward-looking statements. These factors include the continued ability
of the Company to implement its strategy, priorities and initiatives;
our ability to attract, train and retain talented stylists; financial
performance of our franchisees; acceleration of sale of certain salons
to franchisees; The Beautiful Group's ability to transition and operate
its salons successfully, as well as maintain adequate working capital;
the ability of the Company to maintain a satisfactory relationship with
Walmart; marketing efforts to drive traffic; changes in regulatory and
statutory laws including increases in minimum wages; our ability to
maintain and enhance the value of our brands; premature termination of
agreements with our franchisees; our ability to manage cyber threats and
protect the security of sensitive information about our guests,
employees, vendors or Company information; reliance on information
technology systems; reliance on external vendors; competition within the
personal hair care industry; changes in tax exposure; changes in
healthcare; changes in interest rates and foreign currency exchange
rates; failure to standardize operating processes across brands;
consumer shopping trends and changes in manufacturer distribution
channels; financial performance of Empire Education Group; the continued
ability of the Company to implement cost reduction initiatives;
compliance with debt covenants; changes in economic conditions; changes
in consumer tastes and fashion trends; exposure to uninsured or
unidentified risks; ability to attract and retain key management
personnel; reliance on our management team and other key personnel or
other factors not listed above. Additional information concerning
potential factors that could affect future financial results is set
forth in the Company’s Annual Report on Form 10-K for the year ended
June 30, 2018. We undertake no obligation to publicly update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise. However, your attention is directed to any
further disclosures made in our subsequent annual and periodic reports
filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy
Statements on Schedule 14A.
