Vienna, Va., January 16, 2020 – Ratner Companies, the company operating such leading salon brands as Hair Cuttery, BUBBLES and Salon Cielo today announced plans to close about 10 percent of its stores following a comprehensive evaluation of its locations that took into account historical and recent performance and the timing of lease expirations. These store closings will begin in late January and continue for several months. It will maintain a presence in all existing markets.
“We are a strong people-first company that is taking pro-active steps to lower our costs and focus on our best performing locations so we can continue to help our people earn a better living and provide a superior guest experience,” said Phil Horvath, Ratner President and COO. “Due to intense competition and rising operating costs, we have engaged in discussions with certain landlords to renegotiate terms or exit some of our leases. We have been pleased so far with the cooperation from the landlord community. We believe the actions we’re taking will help ensure the health and resilience of our business for years to come.”
The plan addresses pressures facing the larger service and retail industry, including high labor costs and shifting consumer shopping behaviors. Ratner Companies typically closes up to five percent of its store locations each year as it exits lesser-performing salons and leases expire. The company is also reducing staff at its Resource Center to reflect a smaller store portfolio.
The majority of impacted staff in the salons have been offered employment at sister salons in their immediate areas. Some stylists may also take advantage of the opportunity to start their own business at a Salon Plaza, which rents to independent professionals.
About Ratner Companies
Ratner Companies operates 844 salons nationwide under the trade names Hair Cuttery, BUBBLES, Salon Cielo, Salon Plaza, and Cibu. The company began in 1974 to create a quality whole-family salon where stylists could make a good living. Today, the family of salons continues to share this commitment to a transparent, people first culture that offers the best career trajectory in the industry for salon professionals, field leaders and corporate employees. More information is available at ratnerco.com.
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