After more than three months of uncertainty and speculation, the University of the Arts has officially filed for Chapter 7 bankruptcy protection. The decision comes as the institution faces nearly $50 million in debt to bondholders, prompting the university to take action and sell off its valuable real estate holdings.
The bankruptcy filing reveals that the University of the Arts’ assets and liabilities are estimated to be between $50 million and $100 million. Among the school’s assets are several historic buildings located on the prestigious Avenue of the Arts on South Broad Street, with Terra Hall at 201 Broad St. identified as the highest-valued asset.
Back in June, the University of the Arts abruptly closed its doors, leaving over 600 staff members and faculty members without jobs. In an effort to preserve the school and its properties, Temple University explored the possibility of a merger, but negotiations ultimately fell through at the end of August.
In a letter from Temple administrators, including university president Richard M. Englert, it was stated, “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.” Despite this setback, Temple mentioned that more than 330 former and prospective UArts students have enrolled at Temple, paying the same costs they would have at the former university.
As the bankruptcy filing moves forward, the United Academics of Philly union continues to advocate for negotiations over severance payments for the workers affected by the closure of the University of the Arts. The UAP expressed disappointment in the university’s handling of the situation, stating, “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.”
The UAP remains committed to seeking justice for its members and ensuring that those impacted by the university’s closure receive the compensation they deserve. As the bankruptcy proceedings unfold, the fate of the University of the Arts and its assets remains uncertain, with stakeholders and community members closely watching the developments.