-Hair salon operator Regis Corp. RGS, -5.64% said Tuesday it has temporarily closed all of its company-owned sales for at least two weeks, citing continuing uncertainties around the COVID-19 pandemic. The company, which salon brands include Supercuts, Cost Cutters and SmartStyle, also said it was furloughing a “substantial majority” of its workforce, representing about 485 employees across its corporate office, field support and distribution centers, starting on April 5 and lasting at least 30 days. Regis said it will pay a portion of benefits premiums during thie period. In addition, the company said it was cutting the chief executive’s wage by 60%, and wages of vice presidents and above by 30% and the wages of all other employees who will be working full time by 20%. “Given the still uncertain duration and severity associated with the COVID-19 pandemic we have taken additional, aggressive steps to preserve the financial integrity of our company and to protect the safety of our employees and customers,” said CEO Hugh Sawyer. The stock, which was still inactive in pre-market trading, has lost 64.6% over the past three months, while the S&P 500 SPX, -1.59% has declined 18.7%. Payback is a coming REGIS.
Working in a fully developing economy in the United States jobs are very plentiful. Any one can go out and get a part time job or full time job with out education in the food service industry and come home with $13-$15 dollars a hour. You can practically go into any restaurant and get $13.00 dollars a hour to start off with. Which is good for a lot of people since they are in college or semi-retired people looking for added income. But in the beauty industry the corporations are making the professionals the working class poor. Never in my mind would I have though these corporations would treat beauty industry professionals with such little respect and poor wages. So many of these company’s will tell you they are for there employee’s, providing false medical insurance and lack of pay raises. Working for these corporations is the same as working in a sweat shop in China or a Asian nail salon in the U.S.
The chains salons and the franchised salons are pretty much the same when you go for employment. They give you a all caring “Gun Ho” lecture of how important you will be to the “TEAM”, the “TEAM” is the management and owners of the salons that are franchised. A all promising future you will have with there company and how much they care but in the end employment with these corporations they will chew you up and spit you out. Not caring about you as a employee, in here minds they know there will be another coming through the door in a few weeks to take your place when you quit. You are just a number, that’s it a human body to make money and make you follow there rules. And not caring if you have any family, “Its all about the company”. But in there advertising they will let the public know its all about there employee’s.
If you are new to the beauty industry I would not recommend employment at the following company’s.
How many interviews I have done with fellow professionals who have worked at the above named company’s and have not had good experiences. People have worked for years at Regis corporation and have not received pay increases. The same goes for anyone who has or now works for Great Clips. These company’s will force there employees to do a haircut service under 15 minutes, and will also time you on how long you take to sweep up your hair after a haircut service. If these practices they teach and tell you to do are not met they will fire you. I had a sit down with a former employee of Great Clips and was told to me that there was a academy were the owner of the franchised salon has to send you to learn the computer, hair designing methods and customer service skills required by the company. This was not given to her when she was hired and never got it. But was required by Great Clips Corporation for all franchises owner to do for all new hires in there salon. She was paid a minimum of 9.00 hourly and was told she could give herself raises by selling retail and talking customers into washing there hair for 4.00 extra. Most of the time she told me she would work on people who have not washed there hair in days and was filled with hair spray etc. The made for a very unclean atmosphere to work in. But that’s Great Clips promising and not delivering. Twisting there words into falsehoods to there new employees. While the whole time banking on your efforts, especially when they have $7.99 haircut specials that Great Clips has all the time. You make no money but the owners do.
Split shifts were required of her but no compensation for gasoline. Her day would start off at a 10-2 shift and was let go and told to come back at 5-9 shift. And of course she lived in a area that was 45 minutes away, so what could she do sleep in her cat till the next shift. Again no compensation for gasoline to get back and forth. SAD! These are the new times of corporations and how they make the beauty industry professional the “Working Class Poor”. Working a full time job with part-time pay will get you nowhere in this day and age except into debt. So letting you know as a customer when you walk in to one of these establishments let it be known to you that the stylist is really working for tips. Because there wages date back take home pay from the 1980’s. These stylists are under a lot of stress to make money, and when you are in a atmosphere like that people are trying to get you in and out so they may take another client who has walked in and is waiting for there service. In that atmosphere there is a lot of “CAT FIGHT” on who gets the next client, and who is up next. People will skip one another for that extra client. You the consumer will only get a 10-15minute haircut if you go to Great Clips. WHY? Because that is what the company wants.
So if you are a employee of one of these company’s 9.00 a hour times 30 hours weekly gives you 270.00 times 2 gives you 540.00 and then they take out for credit card tips, which gives you a bi-weekly salary of nothing. They will not give you full time because they will not pay for your insurance. And they will also give you a “BS” story of how much more you can make but it is merely penny’s on the dollar.
You cannot make a living with these corporation. And they really don’t care if you do or not!
Regis Corporation, the hair care chain based in Edina, has announced it will be closing 600 “nonperforming” Regis SmartStyle salons, which are located inside Walmarts, on Jan 31. It will leave it with 2,000 other salons, also located within Walmarts, with the decision being taken “to improve shareholder value and position the company for long-term growth.” It’s not been announced yet which Smart Styles will close, with Regis saying it will offer stylists and managers jobs at other locations, as it intends to grow the salons it’s keeping.
According to the Regis website, there are currently 39 SmartStyle salons at Walmart locations in Minnesota. While the closing locations have not yet been revealed, it’s probable that at least some of those affected will be in Minnesota. Most of the state’s Smart-Style salons are found in Walmart’s outside of the Twin Cities. Salons in the metro area are located at Maple Grove, Blaine, Brooklyn Center, Burnsville, Lakeville and Shakopee Walmarts. The Business Journal notes that Regis’ move to close the company-owned locations comes after a period of months in which its sold 1,000 of its other salons to a private equity firm and hundreds more SmartStyle locations to franchisees. It comes despite Congress recently passing a tax bill that will cut corporate tax rates from 35 percent to 21 percent, which is expected to significantly reduce major companies’ bottom lines. But CEO Hugh Sawyer said the decision is “consistent with our multi-year strategic plan” that will allow it to grow its remaining salons.
Regis CEO Hugh Sawyer said that the closings of the “nonperforming” locations was another step in the company’s efforts to restructure its business. The company has been working to re franchise many of its company-owned stores and improve performance at the locations it’s holding onto. Regis splits its business between value-based brands, like Smart Style and Supercuts, and premium brands like Regis Salon. Sawyer took over as CEO last April, replacing Dan Hanrahan. Previously, Sawyer had worked at Chicago-based Huron Consulting Group, which Regis had hired to help it evaluate strategic moves for some of its salons. Since then, Regis has sold 1,000 salons to Los Angeles-based private equity firm Regent, sold hundreds of other SmartStyle locations to franchisees and closed other company-owned sites.
“Regis is committed to maintaining our leadership position in the salon industry,” Sawyer said in a statement. “As a result, we are making significant strategic and operational changes to our business to increase customer traffic, invest in new technologies, decrease non-strategic costs, expand our franchise capabilities and create a new Eco-system for customer interaction.” Regis said it doesn’t plan any further moves in its SmartStyle salon portfolio for the near future. It’s not clear how many employees will be affected; Regis said that it plans to offer many stylists and managers jobs at other locations. Regis ranked No. 25 on the Business Journal’s list of largest public companies in Minnesota last year with revenue of $1.75 billion. That revenue is expected to decline this year; prior to the latest round of closings, analysts had forecast 2018 revenue of about $1.25 billion.
AS AN EMPLOYEE OF HAIR CUTTERY…REGIS BOUGHT OUT SOME OF THE SALONS. WE WERE ALL PROMISED OUR SENIORITY AND THAT THEY WOULD MEET OR EXCEED OUR PAY. I CAN SEE WHY THERE ARE SO MANY COMPLAINTS FOR THIS SALON CHAIN. THE STYLISTS ARE SIMPLY SLAVES FOR THEM. MY CHECKS ARE NOW SHORT BY 400.00 AND I’M WORKING AN EXTRA 8 HOURS . I HAVE NO SENIORTY LIKE THEY SAID I WOULD. THEY ARE ALSO TAKING THE CREDIT CARD TIPS. JUST FROM AN INSIDE VIEW, IF THE COMPANY ACTUALLY CARED A LICK ABOUT THE PEOPLE THAT ARE MAKING THEM THEIR MONEY AND STOPPED BEING SO D$$$ STINGY THEY WOULD HAVE THE OPPURTUNITY FOR A MUCH BETTER REPUTATION. I DON’T KNOW HOW THEY SLEEP AT NIGHT. THERE ARE STYLISTS AT MY SALON WHO HAVE NEVER STRUGGLED IN THEIR CAREER. TWO OF THEM NOW ARE SINGLE MOMS AND YOU CAN IMAGINE HOW A FOUR HUNDRED DOLLAR PAY CUT AFFECTS THEIR LIVES. THE COST OF DAYCARE IS SO HIGH THEY ARE SIMPLY WORKING TO PAY THE DAY CARE. THEY’D BE MUCH BETTER OFF WATCHING KIDS INSTEAD OF SLAVING AT THE SALON. . I BET THEY DON’T EVEN SLEEP AT NIGHT. I KNOW I COULDN’T IF I WERE ROBBING AND SLAVING GREAT STYLISTS OF THEIR WORTH….RUINING LIVES EVERY DAY.
They dont tell you when you are hired you wont get paid your retail commission.lost $150 a month busting my butt …for what? making more elsewhere.
It is obvious the positive opinions of the SCAM Regis Corp, were written by the creeps who back the company. I do not know ANY hairdresser who is happy about working for this CRAP company, since they bought out all other chains in America! Everyone says they are nothing more than sweat labor companies. I hope they go under! They sleep real well, the greedy creeps they are! Before they bought out the former chains, the business was booming! Hairdressers easily moved up the pay scale, and were offered incentives to keep up the good work! But not after these greedy creeps bought out. Everyone is right.. the pay checks are 400 dollars less working more hours! Regis refuses to allow the employees any regular schedule. Each day different hours. Our clients have to call in constantly to see when we work. The phone is ringing off the wall, and we are running back and forth to tell customers our schedules! How can anyone build a clientelle that way? What a joke this company is. The salons that were booming are dead now. Why, because they came in and fired all the long time hairdressers for no reason, ( the ones who were faithful to build the salons up ) then brought in new girls for min. wage! They thought the old customers would come back but they got a big one… NOne of them did. I hope their greed will put them under. We need to go back to not relying on these big corporate hogs, and do our own shops. We don’t need these creeps! The dirty tactics of this corporation will come back and bite them.. and it is already happening! It is great to see their stocks going under, and them having to close shops! It is too bad all these chains allowed them to buy them out! They were nice places to work before Regis took over.
MY complaint is that about a year ago we were all told we couldnt have raises because of the so-called “recession” well being from Canada the recession is not what it is in the states and our numbers haven’t gone down a bit in fact they are much higher then prev years and we even won top salon sales for our region for the 5th year in a row and yet they say the company is suffering so we have to suffer as well?!?! this is BULLSHIT!!!! we are the reason you corporate *** even have a company. and since our sales HAVEN’T suffered at all then why should we suffer with our pays?! we work our *** off for this company and in return have seen nothing, no bonus, no incentive, no RAISE!! YET are being told our managers who’s salons have highest sales in there region get a trip to Rome in October and a nice little bonus. WHERE THE *&^% is my trip and my bonus, it sure as ***(and if your work for first choice you know what i mean) isn’t our managers bringing in 4-500 a day in sales to make us the top salon. we get nothing, notta, not even a 1$ per hour raise. How about all us stylists who work for Regis and are a little irked about there “reasons for cutbacks” dont show up to work for a couple of days all at once, lets see how there sales are then. I couldnt help but want to punch my manager when she says “oh i won a trip to Rome for having top sales” then turn around and tell me “times are tough there will be no raises this year” go *&^% yourself its my *** hard *** work that got you there it sure as *** isnt your $60 in sales a day that did it. lets see where you are without me and im taking my clients with me.
The Hair industry is a industry that you DO need to work your *** off to make good coin but the results are making people feel good and educating them on Hairstyling