Dallas

Business owners, students question Dallas barber school claims upon sudden closure

Blade Craft Barber Academy had been active since 2015 but shut its doors suddenly on Monday, telling students they could continue their studies free at a partner business

NBC Universal, Inc.

NBC 5 reported that Blade Craft Barber Academy in Deep Ellum shut its doors Monday with the founder promising students another Dallas barber school would take the students in for no extra cost. That school tells us they never made any such agreement with Blade Craft NBC 5’s Keenan Willard has more.

Days after a Dallas barber school shut its doors suddenly and told students they would be accepted at another school without paying any extra cost, that other barber academy tells NBC 5 they never reached any such agreement.

NBC 5 first reported on Tuesday that Blade Craft Barber Academy on Main Street in Deep Ellum permanently closed the day before.

Business records from Blade Craft obtained by NBC 5 show that according to the school’s tuition refund policy, it would owe at least $177,600 in refunds to students.

Abbi McMahan wanted to go into barbering and was recommended to Blade Craft Barber Academy.

The school’s website showed it was run by Lilly Benitez, a leader in the nonprofit Deep Ellum Community Foundation Association who offered discounted services for veterans.

McMahan said she was offered a discounted rate of $13,000 for tuition and barbering tools if she paid upfront.

“So that’s what me and my family decided to do,” McMahan said. “So we paid in full with cash.”

McMahan said over the weekend, Blade Craft told students that the school would be closed temporarily for maintenance.

Then came a shock.

“On Monday, we get the email that the school is permanently closed,” McMahan said.

Students provided NBC 5 with an email they received from Benitez telling them that the school was shutting down.

“I was definitely shocked, I was like oh wow,” said McMahan. “My concern was how I was going to ultimately get my barbering license, I’d have to find a new school.”

In the email, Benitez wrote, “We have secured introductions for each of you at Texas Fadez barber school…he was kind enough to offer his hospitality and honor the balance paid towards the program.”

“He told us he hadn’t made any agreements with her, he wasn’t willing to take in any students for free,” said McMahan.

On Thursday, the owner of Texas Fadez spoke with NBC 5 by phone. The man said he never agreed to admit Blade Craft students on the basis of the tuition they’d already paid to Blade Craft.

Instagram messages provided to NBC 5 by the owner of Texas Fadez showed that Benitez contacted him on Saturday about “an opportunity.”

He said he expressed a desire to help – but not while Blade Craft kept students’ tuition money.

He shared a follow-up email he wrote to Benitez, writing “For those who have paid in full or advance, how will that be handled? Will you be providing a refund for the remaining hours?”

He received a text message response from Benitez, saying “The company is dissolving so there will not be refunds or returns that we can access.” 

“I think she should refund the students that need their refunds, and at least come out with some sort of statement, some sort of explanation as to why, like what happened,” McMahan said.

Students sent NBC 5 a copy of Blade Craft’s student handbook.

It lays out a refund policy that says, “If the school is permanently closed and is no longer offering instruction after a student has enrolled, the student shall be entitled to a pro-rata refund.”

NBC 5 obtained business records from Blade Craft showing the school’s enrollment numbers when they shut down, and how much students had paid in tuition.

Based on the refund policy, Blade Craft Barber Academy would owe at least $177,600 in refunds to students who had paid tuition in full before the school closed.

Additionally, multiple students said they each paid $2,475 for their kits of barber tools, and when they asked Benitez if they would receive those tools, she responded by email, “We do not have access to the premises.”

On Tuesday, NBC 5 spoke to Benitez, who told us about her supposed agreement with Texas Fadez and said she was working to find a solution to provide refunds to some students within 90 days.

“My current focus is that the students who were currently enrolled have their hours reported to state agencies because I want every student to get credit for hours worked,” Benitez said in a statement.

NBC 5 reached back out to her today, asking for a response to the messages from Texas Fadez showing they didn’t agree to take in students for free, and the message she sent to Texas Fadez saying Blade Craft students would not receive refunds. We have not heard back.

The Texas Department of Licensing and Registration offers refunds to students who believe they’re owed tuition back after the closure of a cosmetology school.

You can find the link to apply for those refunds here.

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