Regis Completes Additional Restructuring Actions; Re-starts Refranchising Process

(RTTNews) - Regis Corp. (RGS), a leader in the haircare industry, announced Monday the completion of additional restructuring actions to improve its financial performance and further align costs with its transition to a fully franchised business model.

The Company also announced that 84% of its system-wide salons were open as of July 1 and that it closed on the sale of 88 company-owned locations to franchisees during the month of June.

The Company's ongoing transformation to a franchise platform enabled it to take further steps to eliminate administrative costs and personnel. These additional restructuring actions are expected to result in nearly $6.0 million of annualized general and administrative expense savings.

As part of the G&A expense reduction and organizational transition, its Chief Operating Officer who had primary responsibility for company-owned salons has resigned and will depart on July 17. Lain will continue to provide certain consulting services to the company through December 31, 2020.

The Company also re-started its refranchising process in June and announced that an additional 88 company-owned salons were transferred to its asset-light franchise business during the month.