ST LOUIS PARK, Minn. (KMSP) - Regency Beauty Institute announced on its website Wednesday it has permanently closed all 79 of its campuses, including five in Minnesota. In statement posted on their website, the company says it does not have enough cash to continue to run the business.
Regency has campuses in Blaine, Burnsville, Maplewood, St. Cloud and Duluth.
The Twin Cities based company posted this on their website,
It is with great sadness that we announce that after more than 50 years of educating cosmetology students, Regency Beauty Institute is permanently closing on September 28, 2016. This closure affects all 79 campuses.
This is incredibly difficult news for everyone affected: especially our students, teachers, and staff. We recognize that some of you may be finding this out for the first time by reading this. We are truly sorry for the abrupt nature of this information.
How did this happen? In short, the organization does not have the cash to continue to run the business. There are multiple intertwined reasons: declining numbers of cosmetology students nationwide, a negative characterization of for-profit education by regulators and politicians that continues to worsen and, in light of these factors, an inability to obtain continued financing.
This is not another case of a school being forced to shut down because it was accused of wrongdoing. We held ourselves to high educational and ethical standards. The environment is simply not one that allows us to remain open. We diligently explored a range of strategic options that would benefit our students, teachers, and staff — and allow us to remain open. Unfortunately, those efforts were not successful.
In a post for information for students, Regency Beauty Institute asks for students to return their items on Thursday or Friday.
We hope that you continue your cosmetology education. The employment outlook for licensed cosmetologists is bright. We encourage you to complete your cosmetology program at another accredited school through what’s called a "teach-out."
“Teach-outs” are arrangements that allow you to complete your cosmetology program at another accredited school. Regency will be working closely with its accreditor (NACCAS) and the state boards to secure agreements with accredited schools close to each closed campus to “teach out” Regency’s students. If you enroll in a school that has entered into one of these “teach out” agreements, the cost to complete your program is typically lower than under a standard transfer agreement. You are, however, absolutely free to apply as a transfer student to any cosmetology school of your choosing. It is important that you understand that any transfer arrangements will be decided by each school.
State efforts underway to help students, the Minnesota Office of Higher Education released this statement Thursday:
State efforts are underway to minimize the negative impact on students of Regency Beauty Institute, which announced last night it is closing all of its 79 campuses, effective immediately. Five campuses are located in Minnesota and enroll approximately 430 students.
The Minnesota Office of Higher Education (OHE) and the Minnesota Board of Cosmetologist Examiners are working with the school to secure students records, assist with transfers to other schools and mitigate financial hardship caused by the closing.
“There are state and federal resources available to help students impacted by a sudden school closure, including possible student refunds and federal loan forgiveness,” said Commissioner Larry Pogemiller, Office of Higher Education. “Our office is working with both Regency and the Board to make this information available to students as soon as possible, and moving forward, to help them continue their program at another school.”
Current students and those who have withdrawn in the last 120 days may be eligible for closed school discharge of their federal loans. OHE and the Board also have access to bonds that could provide partial refunds for current students. This information will be available in the coming days.