The financial woes of one HBCU continue to mount, and as a result, it is taking extraordinary steps to stay alive.
St. Augustine’s University, once a longtime member of the CIAA, announced they’re filing for bankruptcy as a part of a larger restructuring plan to save the school.
On SAU’s official blog, the Raleigh, NC-based school announced they “will initiate a voluntary Chapter 11 restructuring process. This structured, court-supervised process will enable SAU to organize its financial affairs in an orderly and transparent manner. The decision, made by the University’s Board of Trustees, reflects a deliberate and strategic step to advance the University’s long-term sustainability while addressing current financial realities.”
“Chapter 11 provides a comprehensive path to address our financial challenges and move forward with a stronger foundation,” the SAU Board of Trustees announced.
According to the Triangle Business Journal, St. Aug’s debts are now at upwards of $50 million, causing the school to cancel a legal pursuit of their accreditation status, which expires May 15.
“After careful evaluation, the Board determined that continuing litigation would not be a prudent use of resources,” the SAU blog stated. The school plans to “focus on supporting students through teach-out agreements, developing non-degree certificates and apprenticeship programs, and building a pathway toward reaccreditation. The institution reached this conclusion in cooperation with its accreditor, SACSCOC, to ensure impacted students were able to graduate from an accredited institution.”
A leadership change was also announced as Verjanis A. Peoples will replace Jennie Ward-Robinson as Interim President.
“These steps position the University to move forward with clarity and purpose, continuing its mission of preparing students academically, socially, and spiritually for leadership in a complex, diverse, and rapidly changing world,” St. Augustine’s said.
