New York-based College of New Rochelle, a private Catholic college, has filed for bankruptcy and put its main campus on auction, the school announced last week.
After struggling to manage its financial stability due to mismanagement by former controller Keith Borge, who left the school in $30 million debt, the college filed for Chapter 11 bankruptcy on Friday and announced its plans to put 20 buildings on its 15-acre campus on sale, Lohud reported.
Borge had pleaded guilty to various charges including failing to pay payroll taxes and securities fraud. He was sentenced to three years in prison.
“Today’s bankruptcy filing was nonetheless a sad moment for all of those who have known, loved and been so well served by The College of New Rochelle for more than a century,” Marlene Tutera, Chair The College of New Rochelle Board of Trustees said in a statement.
It's official. The College of New Rochelle has filed for bankruptcy. Here's the filing (sans list of all creditors, which appears to include employees). https://t.co/XiWnOBwUhj
— Dan Bauman (@danbauman77) September 20, 2019
The college was struggling with low cash inflow amid declining student enrolment prompting the school to cease academics last month. By auctioning its campus, the college is anticipating to pay some of its debts.
The College offered many programs at its School of Arts & Sciences, School of Nursing & Healthcare Professions, the Graduate School and the School of New Resources for adult learners and operated in five other locations in the Bronx, Brooklyn, Harlem, and Yonkers.
Earlier this years, the College of New Rochelle designated Mercy College as its preferred institution for almost all academic disciplines offered by it and ensure seamless transfer of its students without interrupting their education.
“The Board of Trustees is grateful for the tremendous efforts made by so many individuals who worked tirelessly in the attempt to save the college, and who then focused on assuring that our students were provided clear pathways to continuing and completing their college educations with Mercy College and other fine institutions,” Tutera added.
Mercy College has also retained some of its faculty and facilities in New Rochelle and at some of its New York City campuses.
Many colleges and universities across the nation have either closed or are currently on the verge of closure due to a steep decline in enrollments and weak finances. In July, Midstate College announced closure due to similar circumstances.
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