- Wednesday, October 16, 2024
A group of shareholders at Regis Corp. have recently voiced their concerns over the mismanagement of the company. They are demanding several changes, including the appointment of two new candidates to the board.
According to a regulatory filing, these investors collectively own around 7.6% of the hair salon operator. William Charters, Gary Wyetzner, and Stephen, Aurora, and Barbara Salvadore make up this group.
In a letter addressed to Chairman David Grissen, the investors expressed their belief that new leadership and governance are essential to address the significant mismanagement that has taken place. They criticized the current board of directors for overseeing considerable value destruction while operating "business as usual."
The letter also emphasized the need for expense reduction to address the company's debt. The investors suggested eliminating "wasteful and misguided spending" as a means to achieve this goal.
Furthermore, the group called for a restructuring of the board, reducing it to five independent directors and the chief executive. They recommended that four existing directors step down in order to facilitate this change. In addition, the investors proposed various cost-cutting measures, such as eliminating parties, reducing cash compensation for executives, improving stylist training efficiency, and divesting any remaining company-owned stores.
Currently, shares of Regis Corp. are trading at $9.95, with minimal changes observed on Tuesday. However, it is worth noting that the stock recently hit a 52-week low of $5.70 on Dec. 20. Over the past year, its value has plummeted by 69%.
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