Students, teachers and staff across the nation received the same automated call and text telling them Regency Beauty Institute would be no more.
The only problem is, they got less than 24 hours notice.
Regency is officially closing all 79 of its campuses across the nation. The decision was made effective yesterday.
The school’s website explains why it's closing after more than 50 years in business.
“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.”
Regency operated four campuses in the state of Arizona. That includes two schools in Mesa and Tolleson.
The state’s Board of Cosmetology estimates 120 to 130 students were enrolled in the schools. That includes Caitlin Castillo, who says the school continued to badger her for money right up until the very end.
"They were hounding me all week. They were calling me all week and all last week for money and today they closed yesterday,” said Castillo.
Now students will have the option to continue their education elsewhere or they can apply for a student loan discharge. Many students that spoke with ABC15 say tuition at the school costs more than $19,000.
Several schools across the valley have said they’ll accept transfers from Regency. That includes Toni & Guy, Aveda Institute, Empire Beauty School and the East Valley Institute of Technology.
Calls by ABC15 to the school’s President and CEO were not returned Thursday.
