Regis Corp., which owns Supercuts and Sassoon hair salons, said Wednesday it will close up to 160 underperforming company-owned salons in fiscal 2009 as part of its profitability review.
"Closing these salons prior to their lease expiration dates eliminates a significant time drain on supervisory and corporate personnel and will add to our bottom-line profitability," said Paul D. Finkelstein, chairman and chief executive, in a statement.
Most of the salon closures are expected to take place in the first half of Regis' fiscal 2009. About 100 locations are regional mall-based stores, another 40 are located in strip malls and 20 are in the U.K. Regis expects to offer workers transfers to nearby company-owned salons.
Regis said it will record pretax charges of about $20 million to $25 million on the closings, most of which is related to lease termination costs and will be posted in the first half of the company's fiscal year.
Regis is slated to announce its fiscal 2008 fourth-quarter earnings results on Aug. 20.
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