Page 12 - ELG1903 Mar-Apr Issue 464

BUSINESS NEWS .

Boston school bankrupt, 50 teachers left unpaid

By Melanie Butler some of whom were not US
The attorney general of the state citizens, were also concerned
of Massachusetts is investigating about unpaid taxes, with one part
the sudden closure of the Boston time teacher telling the Globe FOURSQUARE.COM
Language Institute leaving she was concerned that any tax
students stranded and teachers irregularities could ‘jeopardize
unpaid. the renewal of her permanent
The school, which offered residency card’.
a mixture of foreign language Problems at the Institute,
teaching, TEFL training and which enrolled 3,000 students a
English language classes for year at its peak, do not appear to
migrants and tourists, closed be connected to the down-turn
suddenly when its bank seized in long term students on F1 visas,
the money in after a bankruptcy which has seen enrolments fall
protection order was lifted. A in accredited language schools
notice on the school website across the USs and led to the
dated January 16th states: closure of Embassy English
‘The Institute has been struggling Boston in 2017. As we reported
for some time…we had hoped last month, all three remaining
for a turnaround and a successful Embassy English schools in the
reorganization. However, the recent US were closed at the beginning
seizure by our lender Century Bank of this year, following the chain’s
of our checking account funds has acquisition by EC.
left us no choice but to terminate Boston Language Institute,
operations immediately. ‘ however, was not accredited
School owner, Siri Karm Singh and could not enrol students
Khalsa, informed students and on F1 visas. Its recent problems
staff by e-mail on January 15th. A seemed to have stemmed from This is the second time the reduces the number of non-chain
new intake of students had been a dispute with its landlords, school, which opened in 1981, schools. At least 15 accredited
enrolled one day earlier, according which led to the school being has been declared bankrupt. In language schools are still operating
to a report in the Boston Globe. granted a Chapter 11 bankruptcy 1991 the school went bankrupt in the Boston area, a google search
The school had 57 employees, order last summer allowing it owing $300,000 much of it in suggests, all but three are part of a
according to its Linked in entry, temporary protection from its back. Founder and owner, Mr chain. Sixty per cent of language
with most appearing to have creditors while the company Khalsa however bought it back schools accredited by ACCETT
been part-time teachers. Staff was restructured. The order from bankruptcy court. in the US are part of national
had not been paid for several was rescinded on January 14th The failure of an unaccredited or international chains, compared
weeks, with some reporting their allowing the bank to seize the school may have little impact on to 35 per cent in the UK and just 15
checks had bounced. Teachers, company’s assets. the city’s language school sector but per cent in Ireland and Malta.

newsinbrief

STUDY GROUP IDP EDUCATION BRITISH STUDY LIBERAL ARTS PEARSON NORD ANGLIA
Pathway specialist Shares in IDP CENTRES COLLEGES The FTSE 100 Hong Kong-owned
Study Group has Education Ltd, part The Irish-owned Financial diffi culties company has sold school chain
been sold to French owner of the IELTS chain opened have forced its US school text Nord Anglia has
private equity group exam, rocketed its fi rst language Hampshire College book company bought Oakridge
Ardian for £500 20 percent in school in the in Massachusetts to Nexus Capital International,
million (US$650 February, following Republic in March. to cut enrollments for $250 million. a chain of fi ve
million) including the release of its The Dublin centre and look for a Pearson will receive international
debt, according results for the will offer general partner to ensure 20 percent of schools in South
to Reuters. Ardian six months to English courses, as its future. The small the cash paid to India which
acquired the December 2018. well as an internship liberal arts college equity holders. together enroll
controlling interest Testing revenue programme for is one of a number Pearson retains 7,000 students.
from Providence grew 20 per cent EU citizens as part to run into trouble. its text book Nord Anglia, which
Equity Partners, who in the period, of a strategy of In the last six years, operations in started life as a
paid US570 million which included expanding outside 17 have closed in other markets, small group of UK
for it in 2010. As of the launch of a the UK. The English the New England as well as its language schools
December 31, 2017 computer-based Studio, the budget state. The abrupt English language and summer
the company had version in China. language school closure of Mount operations, which schools, now has
net debt of £422 Overall revenues operation under the Ida College last is seen as a key over 90 schools
million (US$558 and profi ts grew same ownership, year led to calls area according to worldwide. It
million), according by 26 percent already has schools for more fi nancial sources close the recently moved its
to records held at and 34 percent in both the UK and regulation. company. headquarters back
Companies House. respectively. Ireland. to London.

12 March/April 2019