Regis Takes Additional Action to Mitigate COVID-19 Impact

Regis Corporation (NYSE: RGS), a leader in the haircare industry, whose primary business is franchising, owning, and operating technology enabled hair salons, today announced it has taken additional actions to mitigate the effect of the COVID-19 national emergency on its business operations.

Effective immediately, Regis has temporarily closed all of its corporate owned salons for a period of at least two weeks due to the continuing uncertainty around the COVID-19 health crisis and escalating state-level or local government mandates. An insignificant number of the Company’s franchise locations remain operational at this time. Additionally, Regis is implementing a furlough program which impacts a substantial majority of its workforce representing approximately 485 positions across its corporate office, field support and distribution centers. This decision, which is effective as of April 5, 2020, and is anticipated to last no less than 30 days, follows the Company’s March 19th announcement that it had closed salons as required by government mandate, reduced salon hours and suspended the collection of franchisee ad fund fees. In order to mitigate the financial challenge of the furlough on its employees, Regis will pay the employee portion of benefits premiums during this period if the employee has coverage under Regis sponsored benefits plans.

The Company also implemented tiered temporary wage reductions for the CEO (60% reduction), vice presidents and above (30% reduction) and 20% for substantially all other employees who will be working full time during the period of the furlough. Additionally, the Board of Directors is waiving their fees during the period. Regis will continue to follow the guidelines of government and health officials in determining when it will reopen its salons and offices.

Hugh Sawyer, Chairman, President and CEO of Regis stated, “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.” Mr. Sawyer concluded, “I am particularly grateful for the sacrifice of our stylists and employees and the support of our franchise partners as we confront this unprecedented national healthcare crisis.”