Performance Updates

We have been working very hard to turn these stores around. It has not been easy.

We had a potential buyer come forth for the Landfall location. This buyer was brought to us by the landlord at the property. The potential new owner wanted to lease in the same plaza. We asked if the landlord if they could take over the Landfall lease and purchase the assets. The landlord said yes. He has the contact directly. Maria is handling this and is trying to get some capital for the Landfall location instead of just closing it.

Leland we struggled with this month. The GM had a fall in one of the locations, not this one. She has been out for roughly 2-3 weeks so far. I've taken on management with the salon managers. We have been handling many issues and getting their spirits up.

One stylist quit due to a family issue. There is a concern with how that was handled by the general manager and so we are researching it now.

Comments (2)

  1. Sabrina Wall :

    Attachment

    Leland location

  2. Sabrina Wall :

    The buyer fell through. They wanted a bigger salon than our space. The landlord however has said they will help us in any way we need. We are looking at which location to close. The franchisor advised us to close Leland because he said Landfall has better long term potential and that it just needs more marketing.

    The top performing franchisee we had met with and had agreed to have come on board back in Dec Darcy, did not work out because her compensation request was extremely high. We had negotiated with her for some time trying to see if she would take a smaller position but she turned us down. Since then we have been looking for a new salon management company or advisor. We interviewed a management company that did not specialize in salons but were successful with all different types of businesses. We worked with them for several months during Feb and Mar to come to terms. They requested we give them full control over the project. Our legal team advised us that this would not benefit the visa process so we have not come to terms with them yet.

    We found salon management company recently with 30 salons currently. We have a meeting next week with them. They specialize in turning around salons. Hopefully we can work out an arrangement with them where they can come in and help turn the salons around.

Leave a Reply