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

Aveda Corp. is selling the beauty school in northeast Minneapolis.
Publish date:

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.

Sign up: Subscribe to our daily newsletters

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.

Next Up

P.J. Fleck

Looks like the Gophers can put Fleck-to-Tennessee rumors to rest

Fleck is annually a hot commodity when coaching jobs open up.

Matt Dumba

Wild drop front end of back-to-back with Kings

The Wild lost consecutive games for the first time this season.

Andrelton Simmons / Minnesota Twins

Twins sign Andrelton Simmons to one-year deal

The former Angels shortstop is a four-time Gold Glove winner.

covid, vaccine

Minnesotans eligible for COVID shots only need to pre-register once for vaccine lottery

This is good news for people worried that they'd need to sign up every week.

police lights

2 people charged in separate Minneapolis homicides that happened hours apart

A woman is accused of stabbing a man in the chest over $60, while a man is accused of accidentally shooting a victim on the man's birthday.

House for sale

Despite pandemic, Twin Cities housing market set records in 2020

Sales were up 7.7% in 2020 compared to the year before.

Target store inside

Target unveils 'limited-edition' home, lifestyle collection with Levi Strauss

The new collection will be available in some stores and everyone online Feb. 28.

Tim Walz

Walz's $52.4 billion budget increases school spending, raises taxes on wealthy

He says the budget will help level the playing field and ensure all Minnesotans have a fair shot at economic recovery,

Screen Shot 2021-01-26 at 12.55.00 PM

Pictures from Minnesota GOP's Deadwood retreat show no masks, no distancing

The pictures were shared in Chair Jennifer Carnahan's latest email newsletter.

Alexus Norberg

Search for girl, 14, missing from St. Cloud

The teen left her home without her parents' permission.


More layoffs coming at the hedge fund-owned Pioneer Press

The newspaper's editorial department has already been decimated by cuts.

Nate Schimelpfenig

Customer still getting charged for using the Minneapolis Super Bowl zipline

There have been numerous complaints made about the company involved.

Drive through

Why is Minneapolis considering a ban on drive-thrus?

It would prevent any new drive-thrus being built in the city.


MIA announces layoffs as it cuts $4M from budget

The coronavirus pandemic has taken a toll on museums and attractions across the state.

Screen Shot 2020-03-05 at 4.09.01 PM

Twin Cities restaurant group Parasole to be sold to equity fund

Parasole owns a number of Twin Cities eateries, including Manny's Steakhouse.


Mass layoffs at Gedney Foods, home of 'The Minnesota Pickle'

The cuts will affect Gedney's Chaska pickling plant.

US Bank

Job cuts coming to U.S. Bank branches, offices

The Minneapolis-based bank is currently amidst a cull of its branches.

Minneapolis-based Bite Squad sold in $321 million deal

Bite Squad was founded in Minneapolis in 2012.