UPDATE: Students left puzzled as Regency Beauty Institute abrupt - WRCBtv.com | Chattanooga News, Weather & Sports

UPDATE: Students left puzzled as Regency Beauty Institute abruptly closes

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CHATTANOOGA, TN (WRCB) -

UPDATE: Regency Beauty Institute students are stunned at the news that their school has been closed. Seventy-nine schools across the U.S. closed their doors, leaving students to figure out their next steps.

It's something Nikki Parson never wanted or expected to hear: "All the campuses were closing down. All 78, we were really confused what was happening." 

Another student, Amanda Rodriguez was stunned, telling Channel 3 "No way to answer any questions, no explanation. They shut down their Instagram account, no way to communicate through Facebook. Nothing." 
 
Students say there was no warning. Kristen Chastain took out loans for $20,000 dollars. She doesn't know if she will get her money back. "I am very mad. Kind of heartbroken, I had my heart set on it. Now we are floating, we don't know what were doing. 
 
Chastain only had six  more months left of beauty school. 

Another student, Amanda Rodriguez was stunned, telling Channel 3 "No way to answer any questions, no explanation. They shut down their Instagram account, no way to communicate through Facebook. Nothing."

Students are now stuck scrambling to gather their items, and see if other nearby schools will accept their credits. 

The school cited financial shortages and a decreasing number of cosmetology students, as well as regulations aimed at for-profit schools.


PREVIOUS STORY: The Regency Beauty Institute announced the immediate closure all its campuses across the country Wednesday.

Students were greeted with signs posted on the doors of the school, announcing the closure and times that students could collect their personal items.

Regency had 79 schools across the country, with a Chattanooga location on Gunbarrel Road. Other locations in Tennessee include two in Nashville and another in Knoxville.

READ MORE | Regency Beauty Institute website

Regency's website posted this statement:

"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."

School officials blamed the closures on a lack of funds due to a shortage of cosmetology students and political circumstances.

Regency posted a page on their website with information and instructions for current students.

Students have been asked to return to the facilities Thursday or Friday afternoon to gather their personal belongings.

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