Regis® Announces Agreement to Franchise the Holiday Hair Brand and Sell an Additional 133 Company-Owned Salons to the Alline Salon Group
Summary
“The Pennsylvania transaction marks the culmination of an 18-month process that resulted in the conversion or purchase of 389 salons which will operate under the Supercuts, Cost Cutters and Holiday Hair brands. Hugh Sawyer, President and Chief Executive Officer of Regis Corporation commented, “Growing with competent multi-unit operators, like the Alline Salon Group, strengthens our franchise portfolio and further accelerates our strategy to convert to a capital-light, technology enabled franchise business.” Mr. Sawyer added, “Regis has a pipeline of 970 salons to be transitioned to franchisees in various stages of negotiation. Alline strives to become the employer brand of choice for successful and dedicated stylists who want the opportunity to pursue a career in the hair care space. These factors include the continued ability of the Company to implement its strategy, priorities and initiatives; our and our franchisees ability to attract, train and retain talented stylists; financial performance of our franchisees; acceleration of sale of salons to franchisees; if our capital investments in improving technology do not achieve appropriate returns; our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, employees, vendors or Company information; The Beautiful Groups inability to 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; reliance on information technology systems; reliance on external vendors; consumer shopping trends and changes in manufacturer distribution channels; 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; 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; reliance on our management team and other key personnel or other factors not listed above. 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.