Regis Announces the Franchise of Over 100 Salons in the United Kingdom to the Bushell Investment Group
December 13 2019 - 6:00AM
Business Wire
Regis Corporation (NYSE: RGS), a leader in the haircare
industry, whose primary business is franchising, owning, and
operating technology enabled hair salons, today announced that it
entered into a franchise arrangement with the Bushell Investment
Group (BIG), which has acquired over 100 Supercuts® and Regis®
salons in the United Kingdom from The Beautiful Group (TBG).
The Bushell Investment Group is a UK based private family office
focused on investing in small and medium enterprise businesses
within the U.K., Europe and North America. BIG offers a range of
equity and debt solutions focused on assisting business owners and
management teams in developing their businesses. BIG has
investments in a range of businesses, including property finance,
logistics and warehousing, professional services support and
retail.
"We are excited about our new relationship with BIG and believe
they are well positioned to operate the Supercuts and Regis salons
in the U.K.,” commented Eric Bakken, Executive Vice President,
President - Franchise of Regis Corporation. “We are pleased to
maintain the Supercuts and Regis brands in the U.K. and this
arrangement will enable us to preserve the brands and optionality
for the future.”
Lee Bushell, CEO of Bushell Investment Group, said “We are
thrilled to become a franchisee of the well-known brands Regis and
Supercuts. This acquisition from TBG fits well with our experience
of owning multi-unit retail stores. This is an incredible
opportunity and we look forward to the future.”
As part of the arrangement, BIG is retaining longtime portfolio
manager, Jackie Lang. “Jackie’s experience and tenure operating
Supercuts and Regis salons in the U.K. is an asset to BIG and
maintains leadership continuity during this transition,” Bakken
added.
Hugh Sawyer, President and CEO of Regis Corporation commented
“We are pleased to establish a new franchise relationship with
Bushell Investment Group. We believe this new arrangement will
de-risk our portfolio, establish a platform for future growth and
ultimately prove to be in the best long-term interests of our
shareholders.”
The remaining TBG salons not acquired by BIG will likely be
closed as part of TBG’s insolvency proceeding in the United
Kingdom. Regis did not have and does not incur any financial
obligations related to the closure of those salons.
About Regis Corporation Regis 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 information, please visit the
Investor Information section of the corporate website at
www.regiscorp.com.
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 and our
franchisee's 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 Group's 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. Additional information concerning
potential factors that could affect future financial results is set
forth under Item 1A on Form 10-K. 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20191213005043/en/
Regis Corporation Kersten Zupfer
investorrelations@regiscorp.com
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