US-based hair salon operator Regis Corporation has revealed plans to close nearly 600 SmartStyle salons by the end of this month.
According to Regis’ president and CEO Hugh Sawyer, the closure is part of the company’s restructuring plans, which aim to improve shareholder value and reallocate capital and human resources.
The company is also intending to enhance its remaining 2,000 salons with new offerings.
Sawyer said: “Our people are at the centre of who we are and what we do. As a result, any decision that may affect our associates is carefully considered prior to implementation.
“To retain the unique talent and loyalty of our stylist community, we intend to offer many of our impacted stylists and salon managers comparable positions in other SmartStyle or Regis family of brands salons.”
The restructuring plan is intended to improve Regis’ customer traffic and investments in new technologies, as well as reduce non-strategic costs and boost franchise expansion.
Sawyer added: “With SmartStyle and other Regis brands continuing to maintain an extensive company-owned and franchised footprint across the country, we believe this action will substantially complete the restructuring of our nonperforming company-owned salon portfolio during the first year of our strategic and operational transformation.”
