The Aveda Institute in Minneapolis to be sold, layoffs and rehires coming

Aveda Corp. is selling the beauty school in northeast Minneapolis.
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Aveda Corp. is selling its flagship beauty and salon training school, the Aveda Institute in northeast Minneapolis.

The Minnesota Department of Employment and Economic Development confirmed to BMTN it has been informed about the impending sale of the facility at 400 Central Avenue SE.

As a result of the sale to Beauty Basics Inc., which is due to take place in April, Blaine-based Aveda plans to lay off 101 workers. 

Also included in the deal is the Aveda Institute New York, which together with Minneapolis are the only two schools remaining under Aveda's ownership.

DEED says its rapid response team has already reached out to Aveda to provide support, though Aveda told the Star Tribune that all affected employees at Minneapolis and New York have been offered new jobs by Beauty Basics.

The 60-plus other Aveda Institutes in the country are owned independently, including by Beauty Basics' parent company, Neill Corp., which owns and operates 15 of them in the American southeast.

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Aveda was founded in Blaine by Austrian-born Horst Rechelbacher, who launched it off the back of a single shampoo in 1978, before expanding its range of hair and beauty products and later creating the chain of Aveda Institute styling schools.

The company was sold in 1997 to Estée Lauder for around $300 million, and continues to make hair and beauty products at its Blaine factory.

The Star Tribune notes that this factory is unaffected by the sale.

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