Private investor The Riverside Company saw an opportunity with salon brand Bishops to “replicate some of the playbook that we’ve executed on our previous franchise investments,” said Aakeem Andrada, a private equity senior associate at Riverside.
“We were really excited about the opportunity to partner with Bishops,” Andrada said. “A lot of the excitement was really drive by the growth opportunity.”
Riverside acquired Bishops in June. Portland, Oregon-based Bishops has more than 40 salons nationwide, providing haircut, color and styling services to everyone.
Bishops started in 2001 when Leo Rivera, who was losing his hair, was sick of paying so much for haircuts, but didn’t want to visit budget salons in fear of getting a bad haircut. The brand has a hybrid appointment model, so guests can walk in for a service or they can make an appointment online.
“We’re not just on trend, we’re ahead of the trend,” CEO Leigh Feldman said.
The brand is looking forward to Riverside adding “fuel to the fire,” Feldman said. “They’re helping us build out the team to support the stores that are currently in the system, as we look to grow those within the network already, and then they’re helping us grow by bringing on new franchisees.”
Andrada said Riverside is looking forward to growing Bishop’s nationwide. “Bishop’s has always done a great job of providing franchisee support and has a really strong franchisee base. But we saw an opportunity to continue to invest,” he said.
Feldman’s goal for Bishop’s involves reimagining what the hair salon experience is. The brand is “really focusing on what does premium look and feel like,” he said.
Major players in the haircutting and styling space include Great Clips, Fantastic Sam’s and Sports Clips. Great Clips has more than 4,000 units worldwide, Sports Clips has just under 2,000 and Fantastic Sam’s has several hundred salons. Great Clips and Sports Clips only offer haircutting services, while Fantastic Sam’s offers an array of services, like color and waxing.
Riverside also recently purchased Green Guard Services through its EverSmith Brands portfolio, and Mold Medics through Threshold Brands. The company has invested in more than 30 franchised brands over the years.
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“Riverside is always churning,” Andrada said. “We remain active and we’re constantly looking for well-managed, high-growth companies, similar to what we found with Bishop’s, to partner with and help take to the next level.”