Regis Corp. announced it is in discussions to add another outside director to its board. The Edina-based hair care company issued a press release saying the company is talking with Daniel Beltzman, Managing Member of Birch Run Capital, about including him on the ballot at the 2012 annual meeting. Regis typically holds their annual meeting in October.
In February, Birch Run had increased its stake in Regis to 8.3 percent, and the company and its affiliates now own approximately 10.4 percent of Regis. Birch Run, an investment advisor based in New York City, is focused on value-based opportunities in public or private companies and looks to partner with management teams and boards to drive long-term shareholder wealth creation. Birch Run is co-managed by Beltzman and Gregory Smith.
Regis lost a bruising proxy battle last fall with New York-based hedge fund, Starboard Value LP, in which Starboard ended up with three seats on the Regis board.
Two director positions at Regis could be open at the next Regis annual meeting. Outgoing Regis president Randy Pearce won on seat on the board at the last annual meeting but he announced on January 26th that he would retire in June. Pearce is forfeiting his seat on the board and the CEO role he was scheduled to fill. Also on April 30, long-time director and Chairman Paul Finkelstein resigned from Regis.
Regarding the potential addition of Beltzman to the board, Regis Chairman Joel Conner said in the company's press release, "As part of our ongoing efforts, we regularly consider the composition of our board, including the potential addition of new directors who will help the company achieve our goals. Birch Run has been a strong advocate of Regis and we have a shared commitment to enhancing shareholder value."
Patrick Kennedy • 612-673-7926