Regis Lays Off 110; Kathie Lee and Kelly Ripa Inconsolable

Sorry, the headline to this post is just me being a smart ass again. The Regis in question is not the teevee talk and game show host of Who Wants to Be a Millionaire fame, but rather a company that apparently owns a shit pot load of hair care salons. Here is Twin Cities Business reporting the story along with the announcement that the Regis CEO is stepping down:

The Edina-based hair-care company made that announcement Thursday—and separately confirmed that it laid off 110 employees at its corporate office this week. Further details about the job cuts weren’t immediately available mid-day Thursday.

Details may not have been available, but the reason for the (ahem) haircut in staffing levels was:

Regis has struggled and trimmed expenses in recent years as consumers have reduced the frequency of their salon visits amid the recession. Its net income dropped more than 79 percent in the fiscal year that ended in June 2011, and it reported a net loss totaling $8.9 million. Revenue, meanwhile, fell about 1.4 percent to $2.32 billion during the period—an improvement from a 3 percent drop the previous year.

For second quarter that ended in December, the company’s revenue was down 1.9 percent to $492.1 million—and Regis reported a net loss of $57.4 million, or $1.01 per share, a sharp contrast to $14.5 million in net income for the second quarter of the prior fiscal year; the loss was prompted by a $77 million after-tax, non-cash charge related to a goodwill writedown for the company’s Hair Restoration Centers. Excluding one-time charges, Regis’ second-quarter earnings were 32 cents per share, higher than the 23 cents per share expected by analysts polled by Thomson Reuters.

Regis, one of Minnesota’s 25-largest public companies based on revenue, operates more than 12,800 salons, cosmetology education centers, and hair restoration centers worldwide—including franchised locations.

So was there any corporate FlackSpeak attached to this announcement? You bet you your hair extensions there was:

Regis’ lead independent Director Joel Conner said in a Thursday statement that the company’s new CEO will “focus on a compelling customer experience and deliver a substantial increase in shareholder value.”

He added: “Today’s announcements reflect the company’s commitment to enhanced shareholder value and strong corporate governance. The board has heard the concerns from shareholders with respect to governance and compensation practices, and we are moving quickly in response.”

In other words, the board said "fire some of those slackjawed deadbeats on your staff and increase our share values, pronto!" Because THAT is the new American Way.


Bonus: Regis and Butt Head