Regis Agrees To Sale, Conversion Of 133 More Company-owned Salons - Quick Facts

(RTTNews) - Haircare company Regis Corp. (RGS) announced Tuesday they have entered into an agreement for the sale and conversion of an additional 133 company-owned salons located in the state of Pennsylvania and surrounding areas to the Alline Salon Group, formerly known as Super C Group.

The salons being acquired are currently branded as Holiday Hair, Famous Hair, Best Cuts, CityLooks, Style America and BoRics Hair Care. One hundred and five of the salons will be under the Holiday Hair banner and the balance will be converted to the Regis Cost Cutters brand.

The transition and conversion began early December and will continue into early 2020.

Regis' primary business is franchising, owning, and operating technology enabled hair salons. With this sale, Alline will also be the Regis' largest franchisee and the sole Holiday Hair franchisee.

In late 2018, the Alline Salon Group purchased and converted 66 stores to Supercuts in Michigan. In early 2019, they purchased and successfully converted 190 salons in Ohio to Cost Cutters and Supercuts making them the largest Supercuts and Cost Cutters franchisee for Regis.

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.

Regis now has a pipeline of 970 salons to be transitioned to franchisees in various stages of negotiation. The pipeline represents approximately 50% of Regis' remaining company-owned salon portfolio when taking into account expected closures of approximately 380 under-performing locations.