Drupal Thumbnails / Image Styles are not being generated

Was wondering if anyone can help with the issue I am facing. Drupal 8 installation.

The image styles are not being created. The original image works fine.

I tried creating the thumbnails folder and gave it 775 permissions but that still didn’t work.

Any other suggestions?

http://oi67.tinypic.com/f40b46.jpg

Drupal version: 


Source: https://www.drupal.org/taxonomy/term/22/feed