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Regis Corporation

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"Cost Cutters" redirects here. For the drugstore of the same name, see Drug Fair.

Regis Corporation
FormerlyKunin Beauty Salon
Company typePublic
NYSE: RGS
IndustryHair salon retail chain, beauty services
FoundedEdina, Minnesota, US (1922)
Founders
  • Paul Kunin
  • Florence Kunin
HeadquartersMinneapolis, Minnesota, US
Number of locations
5,839
Key people
Matthew Doctor (CEO)
Products
Brands
  • Best Cuts
  • BoRics Hair
  • Carlton Hair
  • City Looks
  • Cost Cutters
  • Empire Beauty Schools
  • Famous Hair
  • First Choice Haircutters
  • HairCrafters
  • HairMasters
  • Holiday Hair
  • Magicuts
  • MasterCuts
  • Regis Salons
  • Roosters Men's Grooming Center (Roosters)
  • Sassoon Salons
  • Saturday's
  • SmartStyle
  • Style America
  • Supercuts
  • TGF Hair Salon
RevenueDecreaseUS$1.69 billion (2017)
Number of employees
2,446 (June 2021)
Websitewww.regiscorp.com

Regis Corporation is an American operator of hair salons. As of August 2021, it has 5,563 franchised and 276 company-owned salons. Its headquarters are in Minneapolis, Minnesota.[1]

The primary trade names Regis salons operates under are SmartStyle, Supercuts, Holiday Hair, Cost Cutters, First Choice Haircutters, Regis Salons, MasterCuts, Pro-Cuts, Famous Hair, and Roosters Men's Grooming Center.[2]

History

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A HairMasters location in Hillsboro, Oregon

Regis was founded in 1922[3] by Paul and Florence Kunin as Kunin Beauty Salon. They sold it to their son Myron in 1958, who renamed the company Regis and moved its salons from department stores to shopping malls.[4] In 1982, the company introduced the Pro-Cuts brand, a value-priced salon for men and families.[5] By the mid-1980s, the company had 500 salons in malls across middle America and hit $150 million annual sales in 1987.[6]

Regis became a public company in 1991[6] and opened its headquarters in Edina, Minnesota in 1992.[7] In December 1993, Regis acquired 88 salons from the Trade Secret Development Corporation for $12.8 million. The deal helped expand the company's business in the sale of hair and beauty supplies.[8]

By 1994, its upscale store chain Regis Hairstyles accounted for 64% of total sales. Mastercuts Family, meanwhile, accounted for 15% aggregate sales. Regis had 286 stores in Britain, Canada, South Africa, and Mexico.[8]

In July 1996, Regis announced its intention to acquire SuperCuts in a stock swap valued at about $150 million. At the time, Regis had 1,950 hair care salons worldwide, while SuperCuts had 1,168 in the United States.[9][10] This acquisition allowed Regis to expand into strip centers and street locations.[4] SuperCuts UK remained independent until 2000, when the companies officially merged.[11] By 1998, Regis operated 3,555 salons under the names Supercuts, MasterCuts, TradeSecret, and Regis, and topped the billion-dollar mark in revenue.[6]

In 1999, the two largest publicly traded hair-salon companies merged when Regis acquired The Barbers, Hairstyling for Men & Women, Inc. for $58.7 million. Regis gained more than 4,600 salons and combined sales of nearly $1.5 billion.[12] As part of the merger, the company acquired 199 salons operating as Cost Cutters in Wal-Mart stores, making Regis the primary provider of salon services in Wal-Marts.[13] Family Hair Care, City Looks Salons International, and We Care Hair were also acquired.[14]

In 2002, the Regis a Fortune 1000 company.[14] In April, it acquired Jean Louis David, which owned 1,200 locations in France, Italy, Spain, Brazil, Belgium, Switzerland, Poland, and the US at the time.[15] In July, it acquired 328 BoRics salons to increase its presence in the Chicago, Detroit and Pittsburgh markets.[16] It also acquired 59 salons in Missouri, Kansas, Arizona and North Carolina in October[17] and 25 Vidal Sassoon salons and four Vidal Sassoon beauty academies in December. The company assumed licensing agreements with Procter & Gamble to expand the Vidal Sassoon salon group brand name in North America, Britain and Germany.[18]

In April 2004, Regis acquired 153 Holiday Hair salons based in Pennsylvania.[19][20] In 2005, the company acquired Hair Club for Men and Women.[21]

On January 10, 2006, Regis Corporation announced that, for $2.6 billion, it would acquire the Sally Beauty Company, which would be spun off of Alberto-Culver. At the time, Sally Beauty operated 3,200 stores.[22][23] However, on April 5, 2006, Alberto-Culver terminated the merger agreement and later Sally was spun off as a separate company.[24][25] That same month, Regis acquired 105 Famous Hair, Chicago Hair, and Hair Inc. salons located in Ohio and four other states.[26] By the end of the year, Regis had grown from 1,479 locations in 1994 to 11,333 company-owned and franchised salons, 54 beauty schools, and 90 Hair Club for Men and Women offices.[27]

In October 2007, Regis signed a definitive agreement to merge its continental European franchise salon operations with the Franck Provost Salon Group. The combined entity became known as Provalliance Group, in which Regis maintained a 30% ownership share. The transaction took place in January 2008.[11] In that same month, the company also announced the acquisition of 63 company-owned and 51 franchise PureBeauty and BeautyFirst salon operations across 20 states.[28]

In 2010, Regis started to look for a buyer.[29][5] In July, it spun off Trade Secret, a shopping mall based hair care supply store. It later closed approximately 80 locations, filed for Chapter 11 Bankruptcy protection, and closed all stores.[30] In October, the company announced it would redevelop its Pro-Cuts brand as a sports-themed salon for men to compete against Sports Clips.[5] However, by 2015, this concept had mostly been abandoned.[31] Hedge fund Starboard Value then invested in the company the following year, gaining three board seats and pushing out company leadership, before selling its shares in October 2013.[29]

By February 2011, Regis had increased its share in Provaillance to 46%.[32] However, due to the then-ongoing European debt crisis, the company divested its ownership share by the following year.[33][34] It also sold off Hair Club to the Japanese wigmaker Aderans for $163.5 million in July.[35][36] That same month, Regis acquired the Roosters Men’s Grooming Center franchise, which had 35 franchised salons in 15 states at the time.[37]

By 2013, Regis had 8,000 corporate-owned and franchise salons, but by 2014, the company's sales had been in decline for six years.[38] In October 2017 Regis Corporation sold much of its mall-based salon assets to The Beautiful Group. These salons became franchises keeping the same brand names. The transaction included 858 North America Regis Salons and MasterCuts locations, the intellectual property related to MasterCuts and other trade names, and 250 Regis Salons and Supercuts salons in the U.K.[39][40] In 2018, the company announced plans to move its headquarters to Minneapolis, Minnesota.[41] It also closed 597 SmartStyle salons.[42]

In June 2019, Regis announced the sale of 96 California-based SuperCuts salons to Moxie Management Group.[43] In May 2019, franchisee Super C Group acquired 190 Famous Hair, Best Cuts, Fiesta Salons, First Choice Haircutters, and BoRics Hair Care salons from Regis, converting them into Supercuts and Cost Cutters.[44] In August, the company sold off 3,108 company-owned salons to franchisees. It also announced its plan to cut the company's 50 brands to just five: Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters, and Roosters.[45] At the end of December, Regis terminated its franchise agreements with The Beautiful Group and took back 200 salons[46] with the stated intention of finding a new buyer. The remaining salons are to be shut down.

In February 2020, Regis announced it had sold its interest in Empire Education Group back to EEG.[47] When the COVID-19 pandemic hit in 2020, the company was in the middle of transitioning its salons corporate to franchise ownership. By the summer of 2022, Regis had not had a positive quarter since 2018 and was in danger of being delisted from the New York Stock Exchange. Regis exited the product distribution business and sold its salon technology platform Opensalon Pro, helping the business report a $2.5 million operating profit that November.[14]

In December 2024, Regis acquired Alline Salon Group, its biggest franchisee, for $22 million. The deal put 314 SuperCuts, Cost Cutters, and Holiday Hair salons in Michigan, Ohio, and Pennsylvania under direct control of the company.[2]

References

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  1. ^ "About Regis Corporation." Regis Corporation. Retrieved on April 21, 2024.
  2. ^ a b "Regis Corp. Buys Back 314 Franchise Salons for $22 Million". American Salon. January 2, 2025. Retrieved May 10, 2025.
  3. ^ Stevenson, Seth (July 13, 2021). "Supercuts Pioneered a New Kind of Hair Salon". Slate. ISSN 1091-2339. Retrieved May 11, 2025.
  4. ^ a b "The Regis Story". REGIS CORPORATION. Retrieved May 14, 2025.
  5. ^ a b c Crosby, Jackie (October 29, 2010). "Regis has new idea, hopes to cut deal". www.startribune.com. Retrieved May 14, 2025.
  6. ^ a b c McLean, Bethany (August 3, 1998). "A Big, Hairy Revenue Machine REGIS, THE WORLD'S FIRST BILLION-DOLLAR HAIR SALON". money.cnn.com. Retrieved May 13, 2025.
  7. ^ "Regis Corporation Announces Move to New Minneapolis Headquarters". regiscorp.irpass.com. Retrieved May 11, 2025.
  8. ^ a b Hurtado, Robert (December 20, 1994). "Market Place; Regis and its hair salons are attracting investor attention". The New York Times. ISSN 0362-4331. Retrieved May 13, 2025.
  9. ^ Peltz, James F. Peltz (July 16, 1996). "Combing for Cash : Salon Chain Regis Seeks to Expand by Acquiring Ailing Supercuts; Deal Valued at $120 Million". Los Angeles Times. Retrieved May 11, 2025.
  10. ^ Jones, Dow (July 16, 1996). "COMPANY NEWS;REGIS TO BUY SUPERCUTS IN A STOCK SWAP". The New York Times. ISSN 0362-4331. Retrieved May 11, 2025.
  11. ^ a b "REGIS COMPLETES MERGER OF EUROPEAN FRANCHISE SALON OPERATIONS". www.sec.gov. January 31, 2008. Retrieved May 12, 2025.
  12. ^ "Regis, Barbers merge". www.bizjournals.com. January 31, 1999. Retrieved May 13, 2025.
  13. ^ "Regis Corporation". www.sec.gov. Retrieved May 13, 2025.
  14. ^ a b c Kaplan, Allison (March 5, 2023). "Good Hair Days Ahead for Regis?". Twin Cities Business. Retrieved May 14, 2025.
  15. ^ "Regis Buys Jean Louis David Salon". Times Union. April 14, 2002. Retrieved May 13, 2025.
  16. ^ "COMPANY NEWS; REGIS, BIGGEST OWNER OF HAIR SALONS, BUYS 328 SHOPS". The New York Times. July 16, 2002. ISSN 0362-4331. Retrieved May 12, 2025.
  17. ^ "COMPANY BRIEFS". The New York Times. October 17, 2002. ISSN 0362-4331. Retrieved May 12, 2025.
  18. ^ Press, The Associated (December 19, 2002). "COMPANY NEWS; REGIS BUYS VIDAL SASSOON BEAUTY SALONS AND ACADEMIES". The New York Times. ISSN 0362-4331. Retrieved May 12, 2025.
  19. ^ "Regis Corporation to Acquire 153 Holiday Hair Salons". regiscorp.irpass.com. April 16, 2004. Retrieved May 13, 2025.
  20. ^ Call, The Morning (April 16, 2004). "Holiday Hair selling chain ** About 40 workers in Allentown will lose jobs in sale to Regis". The Morning Call. Retrieved May 13, 2025.
  21. ^ Ruethling, Gretchen (November 16, 2004). "COMPANY NEWS; REGIS, OWNER OF BEAUTY PARLORS, WILL BUY HAIR CLUB". The New York Times. ISSN 0362-4331. Retrieved May 12, 2025.
  22. ^ Young, Vicki M. (January 10, 2006). "Alberto-Culver to Sell Sally Beauty Unit to Regis for $2.6 Billion". WWD. Retrieved May 13, 2025.
  23. ^ Press, The Associated (January 11, 2006). "Alberto-Culver to Sell Its Professional Lines". The New York Times. ISSN 0362-4331. Retrieved May 13, 2025.
  24. ^ Tribune, Chicago (April 6, 2006). "Alberto deal falls through". Chicago Tribune. Retrieved May 13, 2025.
  25. ^ Helms, Joan (June 19, 2006). "Alberto-Culver to Spin Off Sally Beauty Unit". DealBook. Retrieved May 13, 2025.
  26. ^ "REGIS CORPORATION ACQUIRES FAMOUS HAIR SALONS -Acquisition Includes 105 Salons Located Primarily in Ohio-". regiscorp.irpass.com. April 4, 2006. Retrieved May 14, 2025.
  27. ^ Weingartner, Nancy (November 1, 2006). "It's a beauty-filled world". franchisetimes.com. Retrieved May 11, 2025.
  28. ^ "Regis Completes Acquisition of PureBeauty and BeautyFirst". regiscorp.irpass.com. Retrieved May 12, 2025.
  29. ^ a b Delevingne, Lawrence (November 14, 2014). "The haircut Regis investors may not like or want". CNBC. Retrieved May 13, 2025.
  30. ^ "Trade Secret bankrupt, salon chain to be sold". Reuters. July 6, 2010. Retrieved May 11, 2023.
  31. ^ Ewen, Beth (September 25, 2015). "Lawsuit: Regis clips franchisees by ditching ProCuts". franchisetimes.com. Retrieved May 14, 2025.
  32. ^ "Regis Announces Ownership Increase in Parent Company of Jean Louis David and Franck Provost Salons". regiscorp.irpass.com. February 1, 2011. Retrieved May 12, 2025.
  33. ^ "Value of Regis' Provalliance Deal Drops Along with Euro". Twin Cities Business. June 29, 2012. Retrieved May 12, 2025.
  34. ^ "Regis Completes Sale of Ownership in Provalliance". CNBC. October 2, 2012. Retrieved May 12, 2025.
  35. ^ Priimack, Dan (July 16, 2012). "M&A". CNN Money. Archived from the original on January 7, 2013. Retrieved March 15, 2025.
  36. ^ Alden, William (July 16, 2012). "Regis Agrees to Sell Hair Club for $163.5 Million". DealBook. Retrieved May 12, 2025.
  37. ^ "Regis Adds Roosters Men's Grooming Center Franchise". Twin Cities Business. July 24, 2011. Retrieved May 14, 2025.
  38. ^ "Regis Corp". Supply Chain World magazine. January 17, 2013. Retrieved May 11, 2025.
  39. ^ Wilson, Marianne. "Regis Corp. to focus on value segment". Chain Store Age. Retrieved May 11, 2025.
  40. ^ "Regis Announces Sale and Subsequent Franchise of Substantially All of Its Mall-Based Salons and U.K. Businesses". Business Wire. October 2, 2017. Archived from the original on June 26, 2023. Retrieved May 11, 2025.
  41. ^ "Regis Corporation Announces Move to New Minneapolis Headquarters". regiscorp.irpass.com. Retrieved May 11, 2025.
  42. ^ Anthony, Neal St (September 29, 2018). "Regis, cutting employees and salons, is making a long-awaited financial recovery". www.startribune.com. Retrieved May 14, 2025.
  43. ^ Beltran, Luisa (June 13, 2019). "Regis sells 96 Supercuts salons to Spanos Barber Jesse". PE Hub. Retrieved May 13, 2025.
  44. ^ "Regis Sells 190 Salons To Super C Group". M&A News & Trends - Smart Business Dealmakers. May 29, 2019. Retrieved May 13, 2025.
  45. ^ Uren, Adam (August 27, 2019). "Edina's Regis to sell remaining 3,108 company-owned hair salons". Bring Me The News. Retrieved May 14, 2025.
  46. ^ "Regis Announces a Transaction Involving Certain Salons Operating Under the Regis® and Mastercuts® Brands" (Press release). Regis. December 31, 2019 – via Business Wire.
  47. ^ "Regis Announces Transaction With Empire Education Group". Business Wire. Archived from the original on June 7, 2021. Retrieved May 11, 2025.
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