THE WHAT? Regis has sold its 55 percent stake in accredited cosmetology school operator Empire Education Group in return for ‘de minimis cash compensation, an exclusive private label supply agreement, and an employer of choice arrangement.’
THE DETAILS? At the same time of the sale, Regis, which specialises in franchising, owning, and operating technology enabled hair salons, and EEG entered into an Employer of Choice agreement. This will see Regis-owned salons being designated as the favored employers for EEG cosmetology school graduates.
Subject to regulatory approval, the transaction is expected to close in Regis’ fiscal 2020 Q4.
THE WHY? The developments have been put into place in order to allow Regis to downscale risk factors as the company focuses on future growth.
Amanda Rusin, Senior Vice President & General Counsel, Regis, said, “These agreements de-complicate and de-risk our business enabling us to focus on our ongoing strategic transformation while preserving and enhancing the essential value we derive from our relationship with Empire Education.”