Regis® Announces Profitable Sale and Transfer of 96 Supercuts® Salons to Spanos Barber Jesse & Co. backed Moxie Management Group
MINNEAPOLIS - (BUSINESS WIRE) - June 13, 2019 - Regis Corporation (NYSE: RGS), a leader in the haircare industry, whose primary business is franchising, owning, and operating hair salons, today announced the profitable sale and transfer of 96 of its California-based Supercuts® salons to the Moxie Management Group (Moxie), a portfolio company of a Spanos Barber Jesse & Co. (SBJ) managed fund.
“We are delighted to broaden our successful relationship with the Moxie Group to facilitate the continued growth of our Supercuts® brand in California. Moxie and SBJ not only bring proven experience with the Supercuts brand but also have an impressive record of performance with several other retail and consumer-focused companies. High-quality partnerships like this will help us grow and strengthen the Supercuts® brand and our franchise portfolio,” commented Eric Bakken, Executive Vice President, President - Franchise of Regis Corporation.
Michael Stajer, CEO of Moxie, commented, “We are excited to be meaningfully expanding our relationship with Regis®. Our partnership with both Regis and SBJ will allow us to continue to expand our footprint throughout the U.S. while we carry-on Supercuts®’ 40+ year heritage of providing affordable, high-quality haircuts in a convenient setting.” Gus Spanos, Co-Founder of SBJ, added, “we are very excited to be a part of the Supercuts brand and Regis family and look forward to a successful partnership in the years ahead.”
Hugh Sawyer, President and Chief Executive Officer of Regis Corporation, commented, “We have been undergoing a multi-year strategic transformation at Regis, and an important element of that transformation is accelerating the growth of our asset-light franchise portfolio where it supports shareholder value and an emerging strategy for our business.”
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.
The Moxie salons join over 2,700 Supercuts® across the United States, Canada and Puerto Rico that provide consistent, high-quality hair-care services and professional products to guests at convenient times and locations at reasonable prices. Supercuts® offers a broad selection of professional haircare products including Paul Mitchell, American Crew, TIGI, Redken, Biolage and more. For more information, visit Supercuts.com.
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. To join Regis Corporation’s email alert list, click on this link: http://www.b2i.us/irpass.asp?BzID=913&to=ea&Nav=1&S=0&L=1
About Moxie Management Group
Moxie owns and operates nearly 100 Supercuts salons throughout California. At Moxie, our stylists are our most valuable assets, and we invest heavily in them so that our customers feel confident in every haircut we provide. Moxie stylists are available seven days a week for walk-in services, or customers can check-in on the Supercuts’ app or website for an even more convenient experience. Existing Supercuts franchisees looking to partner with Moxie or stylist candidates can contact us at firstname.lastname@example.org
About Spanos Barber Jesse & Co.
Spanos Barber Jesse & Co. is a private equity firm with approximately $300 million of committed capital, focused on leading investments in founder and family-owned consumer, business services and healthcare services companies. SBJ provides thoughtful strategic advice, domain expertise and a partnership-oriented approach to support the goals of entrepreneurs, owners and management teams. SBJ was founded by an experienced team of professionals with a track record growing companies both as principal investors and as operating executives. Please visit www.sbjcap.com for more information.
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.
SOURCE Regis Corporation