UArts is filing for bankruptcy after proposed Temple merger failed

More than three months after abruptly closing down, the University of the Arts has filed for Chapter 7 bankruptcy protection, intending to sell off its real estate holdings.The school has nearly $50 million in debt to bondholders, and a court filing shows that the shuttered university’s assets and liabilities are valued between $50 million and $100 million.MORE: SS United States to remain in South Philly for now after Sept. 12 eviction is delayedAmong the school’s assets are several historic buildings in the Avenue of the Arts on South Broad Street, and the bankruptcy filing lists nine properties. Philadelphia Business Journal reported that the highest-valued asset is Terra Hall at 201 Broad St.After UArts closed in June, Temple University raised the possibility of a merger to preserve the school and its properties, but talks broke down at the end of August.”After an exhaustive effort by our internal and external team, we were unable to identify a solution that would be in the best interest of Temple’s community and mission,” read an Aug. 29 letter from Temple administrators, including university president Richard M. Englert.Despite the potential merger’s collapse, Temple mentioned that more than 330 former and prospective UArts students enrolled at Temple, paying the same costs they would have at the former university.”We will continue to explore opportunities with other non-profit organizations that might allow us to revitalize and activate UArts’ facilities,” the letter continues.UArts closing led to the layoffs of over 600 staff members and faculty, with the United Academics of Philly union still fighting for negotiations over severance payment for workers affected by the closure.”This filing comes as former students, staff and faculty continue to struggle with the damage done to their educations and careers, and while the UArts Board has neglected its legal, contractual, and moral obligation to negotiate severance payments for workers affected by UArts’ collapse,” read a statement from UAP in response to the bankruptcy filing.The statement continues: “We will fight to make UAP members whole using every legal avenue available – the priority should not be bondholders or real estate developers, but the flesh-and-blood communities whose lives were upended by this disaster.”

Recent Articles

Related Stories

Stay on op - Ge the daily news in your inbox