Salon 505 employees are starting over

AUSTIN (KXAN) - At 9 a.m. Monday, a group of former Salon 505 employees sat on benches while others paced back and forth outside the now-shuttered shop trading stories and frustration over what has happened to them.

"She could've given people at least a two weeks' notice," said Joe Jordan.  "That's common courtesy. Especially being in business as long as she has been in business."

Employees said they had no idea they would be out of a job when they left work Saturday night. But when they came to work the next day at the salon in the Arboretum, the doors were locked and they read, along with customers, two signs taped to the door that said, "Thank you Austin for 34 years, Salon 505."

The store's website, Salon505.com , was defunct Monday. Owner Sharon Baldeschwiler's cell phone number was disconnected, and employees said their emails to her have bounced back.

By Monday morning, it looked like a therapy session as former employees expressed their need to get their expensive supplies and valuable cosmetology licenses locked inside. They couldn't work for two days without them.

"Scissors alone are about $600, and then blow dryers are $100," said Stephanie Marks. " I mean, nothing's really cheap."

A few others talked about the list of bills they don't know when they'll be able to pay. At least one said she's owed two weeks salary. Joe Jordan said the salon owner promised to send payments in the mail but he's not confident that will happen.

They each are frustrated for the same reason and are realizing, together their new reality.

"Just kind of shocked really," said Marks. " Not knowing what I'm going to do next and being fairly new into town. Trying to rebuild and do everything all over again. It's tough."

Marks went to work at Salon 505 in February, bringing with her from Houston 16 years of hairstyling experience.

On Monday, she sat with her new salon family waiting and hoping Simon Property Management would let them in to the building. Simon Property needed to consult with its legal department to make sure opening the doors without the owner there was legal. Finally, Monday afternoon property management opened the doors and gave employees a few hours to gather their belongings.

Although they have what they needed, employees still don't have an answer about why the salon closed after 34 years.

Employees aren't the only ones trying to track down Baldeschwiler. Daily deal company Living Social officials said they haven't been able to reach her either. Salon 505 and Living Social had deal earlier this year to offer a half day of spa services for 82 percent off. The deal included four services for $99. The same package without the coupon costs $550.

That deal drew lots of complaints and a KXAN Consumer investigation . Salon owner Baldeschwiler told KXAN then that she and Living Social agreed to cap the coupons at 1,300 to be sold; 5,000 were sold and the salon was booked into 2012 with those appointments.

Employees said it caused chaos and they were only making about $10 on each of the services. Marks said it created bad ambiance in the salon.

"People weren't getting paid like they were supposed to and so people were walking out a lot, so it was hard to get people working in the salon and able to do all the Living Social people," said Marks.

Sherry Perkins jumped at the deal buying two coupon -- one for a friend and one for herself. She said she loved Salon 505 and never had a bad experience but was surprised about its closing. Perkins said Living Social refunded her coupon Monday morning.

"They reacted right away. They were very professional about it and said, 'No problem, we'll have your money within three to five days.' I was sent an email within two minutes," said Perkins.

Living Social spokesman Sean Lashley said the company cannot disclose terms of the contract with Salon 505.

"We are in the process of trying to reach the salon owner but have not yet made contact," he said. "Once we're able to do so, we'll be able to devise a plan by which to make right by our members. For now, I would encourage LivingSocial members who bought this voucher to remain patient and know that we'll be in touch with them and the media once we've been able to speak with the owner."

For now, Salon 505 remains locked up along with 34 years of history.