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A massage parlor in Denton is closed for at least six months as the Texas Department of Licensing and Regulation investigates suspected human trafficking.

The TDLR announced Wednesday that it issued a six-month emergency closure order for Tao Spa, effective Monday, Sept. 30 and that the operator was prohibited from operating any massage establishment at the location for six months.

In addition to not having a state license to operate as a massage parlor, TDLR inspectors and Denton County Sheriff's Office deputies conducted an onsite inspection of Tao Spa in mid-September. They said neither of the employees working at the business was a licensed massage therapist and that "both employees were dressed provocatively."

Investigators also said "there was an ATM in the middle of the establishment." The TDLR said investigators also found online ads that advertised sexual services offered at the business.

The TDLR named the business owner in their statement, but because officials have not yet announced any arrests or charges resulting from the investigation, the owner's name has been withheld from this report.

“Anyone operating a massage establishment in Texas that is not licensed as required should know that we at TDLR take seriously our responsibilities for protecting clients and employees of massage establishments. We will do what is necessary to make sure that establishments and employees are licensed and that establishments are operating in accordance with the law,” said Courtney Arbour, TDLR executive director.

On Sept. 1, 2023, HB 3579 went into effect, giving the TDLR’s executive director the authority to issue an emergency order halting the operation of any massage establishment if law enforcement or the TDLR believes human trafficking is occurring. This is the 11th instance of emergency orders being issued by the TDLR since the law went into effect and the first to close an unlicensed massage establishment.

Last month, the TDLR announced two massage parlors in Burleson were shut down under emergency orders during an investigation into suspected human trafficking.

Data from the TDLR said they received 608 consumer complaints about massage therapists in 2023. The agency noted a total of 285 unlicensed therapists violations, 123 sexual misconduct violations, and 75 sexual assault violations last year. Of those violations that resulted in disciplinary action, 51 were due to sexual misconduct, 44 were for unlicensed therapists, 20 were for allowing someone to reside on premises and 14 were for failing to drape.

Anyone who suspects human trafficking is occurring can contact the National Hotline for Human Trafficking at 1-888-373-7888 or text HELP or INFO to BeFree (233733). If the situation is an emergency or you believe someone is in immediate danger, call 911 and alert the authorities. Texans are also encouraged to file a complaint on a TDLR regulated business if they suspect the business may be participating in human trafficking.

The company said it would like to remain in Denton County, but is also looking elsewhere for a new corporate HQ.

DENTON, Texas — This article was originally published by our content partners at the Dallas Business Journal. You can read the original article here.

Denton-based Sally Beauty Holdings Inc. is seeking to sell its 23-acre corporate headquarters building to Denton County and could relocate as it weathers a bumpy financial ride.

Denton County commissioners unanimously voted Sept. 13 to purchase the Sally Beauty Supply Company Corporate Support Center at 3001 Colorado Blvd. from Sally Beauty Supply LLC for $45 million. The county will lease back the building to Sally Beauty for a year with the option to extend the lease for three months, with monthly rent of $35,000, according to the Denton County Commissioners Court agenda description.

Denton County Judge Andy Eads said the real estate purchase is a response to the area's rapid growth and need to support its population. Currently the county employs 1,987, according to its website.

"With Denton County being one of the fastest-growing counties in the state and nation, surpassing one million residents, this new property opens numerous possibilities for both current and future uses," Eads said in a statement.

Eads said Sally Beauty (NYSE: SBH) is looking at relocation both in and outside of Denton County for a new headquarters.

"It is our deep desire that they stay within the county," he said.

Mike Smith, Sally Beauty vice president of real estate and development, and Jeff Harkins, vice president of investor relations and treasurer, did not respond to Dallas Business Journal's request for comment.

The land on which the Sally Beauty HQ sits is valued for tax purposes at $25.5 million by Denton Central Appraisal District. The company has about $9.5 million in equipment in the building, according to the district's records. Sally Beauty moved into its headquarters in 2005, according to its website. As of 2023, the headquarters employed 300 people in Denton, according to data from the North Texas Council of Governments.

Brittany Sotelo, Denton's economic development director, said in a statement that the city is aware of Sally Beauty's intention to sell the headquarters and relocate. She wrote that the city has outlined a "range of incentives" to support the company's relocation.

"We are confident that we will remain a competitive location due to our supportive environment, skilled workforce and numerous opportunities for growth," Sotelo wrote.

This isn't the first time the county has purchased a building from the company. In 2019, the county bought Sally Beauty Holding's 114,062-square-foot distribution building and 13.3 acres at 3900 Morse St. for $12 million. That building sits near the county's election administration building, public health department and facilities department — and now serves as the county's record management department, according to a 2019 announcement.

"When we heard that this facility was available, we believed it prudent to consider buying it," Eads said in a 2019 statement. "A new building for records management alone would have cost in excess of $22 million, not including land costs. With this purchase, we have the space for records management at half the cost — thereby saving taxpayer dollars."

Sally Beauty has been dealing with financial headwinds for several years and has been trying to cut expenses and focus on profits. It laid off headquarters staff in 2018, which the company estimated would save up to $15 million, and also changed its leadership team. The company also announced temporary store closures, wage cuts and furloughs near the beginning of the Covid-19 pandemic in 2020. In 2021, Denise Paulonis was named president and CEO.

Sally Beauty reported fiscal 2023 net sales of $3.7 billion, down about 2% from 2022, according to securities documents.

For Sally Beauty's third quarter of fiscal 2024, which ended June 30, consolidated net sales came in at $942 million, up 1.2% compared with the prior year. For the full year, it expects net sales and comparable sales to be "relatively flat" with 2023.

Sally Beauty employs 27,000 full- and part-time employees across 11 countries, according to its website. There are 2,322 Sally Beauty Supply stores across the country and 1,212 beauty stores it owns through its subsidiary Beauty Systems Group.

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