April 23, 2021

To Our Valued Members,

First and foremost, we hope that this communication finds you all safe and healthy. As we progress further into 2021, we are excited for the new opportunities that are developing that seem to bring all of us closer to a more normal way of life. It is hard to believe that it has been a year since the pandemic forced us to close our doors which propelled us to innovate, reinvent ourselves and customize our services in ways we never conceived of.  We are proud of our accomplishments during that time and have continued to open our minds to the evolution necessary to overcome the challenges we know that we still face due to the pandemic disruption of business as usual. This disruption has been true for most industries worldwide. For the sake of transparency, we would like to take this opportunity to address these challenges with you. This way you will have a better understanding of the impact to our industry and the steps our company has taken to address these issues and minimize their impact on you as best as possible.

As some of you may be aware, the hair industry has been sorely affected by this pandemic largely because many of the manufacturing resources and distribution channels are located on the Asian continent. This has created job shortages and an interruption to the distribution chain. This has unfortunately continued into 2021 and we are unsure when many of these issues will be resolved. What we do know is that we are working diligently to create additional avenues to meet the needs of our clients. Hair Club is the largest hair restoration company in North America. and we are fortunate to have the resources available to access large quantities of heads of hair and the advanced technical knowledge and ability to customize these to fit the specs needed for our members. Our production department updates our centers weekly as heads of hair are added into inventory and we have been ordering these at a rapid pace in addition to placing regular orders for our clients. We have also expanded our regular order quantities for clients exponentially with no consideration of cost to build up inventory as best we can. We truly believe that this will provide relief in the months to come. We are providing frequent and high-level customization classes to our stylists to improve their already impressive skill set which will increase our options to customize hair for you. We are expanding our production operations into new countries and have over the past year been training new employees in our legacy production facilities to meet the demands of our business. With that being said, it can take months to get these employees up to speed as the work is very specific to our business and requires much training, but we are laser focused on this effort and are sparing no expense to expedite this training.

We understand the anxiety this may have caused some of you and want to reassure you that we are investing all we can to minimize the production delay’s impact on your experience with Hair Club. We have seen first- hand the impact this pandemic has had on the hair restoration industry as we are seeing clients from our competitors in our consultation rooms every day looking for us to help them since their current provider is without the vast resources that Hair Club has access to.

Despite all the challenges ahead of us, we all must concentrate on how to endure and focus on what we can control. We promise you nothing less than our level best in this endeavor. Hair Club’s core conviction that our company culture is based upon is that you are our number one priority, and we continue to be ever grateful for your patronage. Please reach out to your center management team with any questions or concerns, they are there to help you. We will get through this and hopefully will be on the other side of this pandemic in the months to come.

Thank you and be well.


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