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© 2026 Benzinga | All Rights Reserved
January 16, 2020 6:00 AM 3 min read

Regis Announces Significant Actions To Reduce G&A Costs As The Company Continues Its Transition To A Fully Franchised Model

by Business Wire
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Regis Corporation (NYSE:RGS), a leader in the haircare industry, whose primary business is franchising, owning, and operating technology enabled hair salons, today announced the completion of certain restructuring actions to improve its financial performance and further align costs with the company's transition to a fully franchised business model.

Regis has eliminated administrative costs and personnel substantially required to support the company's historical portfolio of owned and operated salons. The restructuring actions, which reduces the Company's administration staff by approximately 290 positions, including 15 contractors, across the US and Canada, is expected to result in approximately $18.7 million of annualized general and administrative expense savings as the company accelerates its multi-year transformation.

"We are pleased that we are at a point in our transformation where we can continue efforts underway to re-engineer our cost structure. Although this phase of our transformation is certainly difficult, it is necessary in order to properly allocate capital and human resources to support investments in our rapidly growing franchise business," said Hugh Sawyer, President and Chief Executive Officer of Regis Corporation. "We have been successful in transferring salons to franchisees at a faster rate than we originally expected, which allowed us to take these actions early in the new calendar year. While redesigning our cost structure is an important aspect of our strategy, we recognize these changes represent a deeply personal impact to our employees and their families and we are grateful for the many contributions they have made to the historical achievements of Regis."

View source version on businesswire.com: https://www.businesswire.com/news/home/20200116005097/en/

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RGS Logo
RGSRegis Corp
$22.758.38%
Overview

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 ability of the Company to recognize the expected savings from the restructuring actions and the risk that the Company is unable to conduct its operations with the reduced administrative resources. 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.

RGS Logo
RGSRegis Corp
$22.758.38%
Overview
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