Friday, September 20, 2024

Philadelphia university abruptly goes out of business

Must read

A Philadelphia university, located in the heart of the city, announced on Friday it was closing its doors and going out of business. 

The University of the Arts, a private arts school and one of the nation’s oldest institutions of higher learning focused on arts and music, declared that its last day of operations would be June 7, the Philadelphia Inquirer reported. The decision shocked faculty and staff alike, leaving many with the school in disbelief as it had already admitted students to its freshman class that was expected to start in Fall 2024. 

No official reason was given for the abrupt closure other than school officials claiming it was necessary due to an undisclosed “urgent” financial crisis,” according to the Philadelphia Inquirer.

“Under extraordinary circumstances, we diligently assessed the urgent crisis presented and pathways to keep the institution open,” read a statement from the board of the University of the Arts. “Despite our best efforts, we could not ultimately identify a viable path for the institution to remain open and in the service of its mission.”

Additionally, the school was not the first source to announce its closure. The Middle States Commission on Higher Education revealed in a statement that it was revoking the school’s accreditation before the University of the Arts made its announcement. It took effect on June 1.

University finances were said to have substantially declined over the years, partially due to decreased student registrations. The school had suffered a 44% decrease in student enrollment over the last decade, according to reports. Last year, there were only 1,149 students in the school, smaller than most high schools within the Philadelphia area.

“With a cash position that has steadily weakened, we could not cover significant, unanticipated expenses,” read the school’s statement. “The situation came to light very suddenly. Despite swift action, we were unable to bridge the necessary gaps.”

On Sunday, the school announced it would hold a virtual meeting about the closure on June 3 at 4 p.m. The stated goal of this meeting is “to share information about UArts’ imminent closure and to address some of the important questions we know you have.”

The closure also leaves Philadelphia with a huge vacancy in its Center City area. Less than a mile south of the mayor’s office in Center City, Philadelphia had its “Avenue of the Arts” section on Broad Street, which consisted of many University of the Arts buildings. The Philadelphia Inquirer reported that the school currently had approximately $94 million worth of Real Estate holdings.

CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER

Several city councilmembers announced anger and shock over the school’s decision to close. However, at least one of them expressed some optimism about the school’s future, expressing hope that it could somehow be rescued with some creative and unconventional thinking.

“As a Philadelphia treasure, we want to look at all options available to us to see how we can help, and to see if we can partner with other providers to keep the school open,” City Councilmember Mark Squilla said.

Your morning rundown of the latest news from Colorado Springs and around the country

Success! Thank you for subscribing to our newsletter.

Latest article