SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report: DECEMBER 26, 1996
(Date of earliest event reported)
THE BARBERS, HAIRSTYLING FOR MEN & WOMEN, INC.
(Exact name of registrant as specified in its charter)
MINNESOTA 0-24466 41-0945858
(State or other jurisdiction of Commission (I.R.S. Employer
incorporation or organization) File No. Identification No.)
300 INDUSTRIAL BOULEVARD NE
MINNEAPOLIS, MN 55413
- ----------------------------------------- --------------
(Address of principal executive offices) (Zip Code)
(612) 331-8500
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
Item 5. Other Events
On December 26, 1996, The Barbers, Hairstyling for Men & Women, Inc.
(the "Company") issued a press release announcing an agreement in principal with
We Care Hair Development, Inc., to acquire the franchise rights to approximately
145 hair care salons located throughout the United States with concentration in
Illinois, Indiana, and Ohio. The purchase price is expected to be all cash, with
an initial payment to the seller of approximately $2,000,000 and subsequent
payments based on performance of the acquired salons.
Item 7 (c). Exhibits. Page
20 Press Release dated December 26, 1996 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned, hereunto duly authorized.
Dated: December 31, 1996 The Barbers, Hairstyling for Men & Women, Inc.
----------------------------------------------
Registrant
By: /s/ J. Brent Hanson
J. Brent Hanson
Vice President & Chief Financial Officer
From: For:
Swenson/Falker Associates Inc. The Barbers, Hairstyling for Men & Women, Inc.
1111 TCF Tower, 121 S. 8th St. 300 Industrial Blvd. NE
Minneapolis, MN 55402 Minneapolis, MN 55413
Contact - Shannon Burns Contact - Fred Huggins, CEO
(612) 371-0000 (612) 331-8500
FOR IMMEDIATE RELEASE
THE BARBERS TO ACQUIRE WE CARE HAIR(R) SALON CHAIN
- -------------------------------------------------------------------------------
MINNEAPOLIS, Dec. 26-- The Barbers, Hairstyling for Men & Women, Inc.
(Nasdaq:BBHF), franchisor of Cost Cutters(R) Family Hair Care and City Looks
Salons International(R), today announced a preliminary agreement to acquire the
trademark and franchise agreements of We Care Hair Development, Inc., a
Chicago-based chain of value-priced hair care salons. The purchase price will be
$2 million, plus a percentage of future royalties.
We Care Hair(R) has approximately 145 salons. These are located
throughout the United States and Mexico, with a concentration in Illinois,
Indiana and Ohio. It is 50 percent owned by John Amico, founder of the company,
and 50 percent owned by other private individuals.
The Barbers has negotiated a $2.5 million term loan from Norwest Bank
Minnesota, N.A., as well as a $500,000 increase in the Company's line of credit.
These funds will be used to finance the purchase and provide operating funds.
Fred Huggins, president of The Barbers, said, "This acquisition is a
very good fit for The Barbers and for We Care Hair. Both companies provide the
same services - hair cutting, perming, and coloring. In addition, The Barbers
has a low concentration of franchisees in those states where We Care Hair is
strongest. Because of this close fit, we plan to work with the We Care Hair
franchisees to eventually convert many of those salons to Cost Cutters salons."
"This acquisition is a great opportunity for our franchisees," said
John Amico, president of We Care Hair Development, Inc. "The Barbers will
provide them with top-notch professional support services and access to quality
hair care product lines at competitive prices."
Florence Francis, chairman of The Barbers, said, "We are please to
welcome these new members of The Barbers' franchisee family. This is our third
acquisition of a franchise hair care salon chain in five years, and we expect it
to be as successful as the others. We will continue to seek appropriate
acquisitions to supplement our internal growth from opening new Cost Cutters and
City Looks salons."
The Barbers, Hairstyling for Men & Women, Inc., based in Minneapolis,
provides hair styling and hair care products through 800 franchised and
company-owned salons, operating primarily under the name Cost Cutters(R) Family
Hair Care and City Looks Salons International(R).
