Create subfolders

Is there a way to create subfolders using the first letter of existing folders and move the existing folders (and its contents) into the newly created subfolders?
I see there is a way for files but not folders.

Existing Folders:
Leonard's movie collection
Leonard''s music collection

New subfolder:
L
Leonard's movie collection
Leonard''s music collection

Thank you

I forgot to mention that I would like to create button that can perform this function.

Rename REGEXP PATTERN "(.)(.*)" TO "\1\\0"

Wow! That was a fast response. Do you ever sleep Leo.

Thank you, it works perfectly! I would never have figured out that script on my own.