Regis To Acquire Trade Secret’s Assets

What’s old is new again. Regis will reacquire certain assets of Trade Secret, a Canadian beauty and hair care retailer.

Trade Secret Inc. last week filed a voluntary petition for Chapter 11 bankruptcy court protection in Delaware. As part of the plan, Regis will acquire the company for$45 million, which includes the assumption of $13 million in liabilities, with Regis transferring the interest into a new entity associated with Brian Luborsky, chief executive officer, for the purpose of operating a scaled-down version of the firm.

Trade Secret, based in Ontario, Canada, operates both beauty and hair care retail sites. Operations are primarily mall-based, although 20% of the sites are located in outdoor shopping centers. The businesses operate under four trade names: Trade Secret, Beauty Express, BeautyFirst and PureBeauty.

For the year ended January 2010, Trade Secret’s revenues were $220 million.The proposed transaction requires bankruptcy court approval and is subject to higher offers in a court-approved auction.

Regis sold the money-losing operation to Premier Salons Beauty Inc. in February 2009 for $3, according to Luborsky’s affidavit. Regis, based in Minneapolis, operates salons and hair restoration centers.