The University of the Arts shocked the community when it suddenly closed its doors over three months ago. Now, the institution has taken the next step by filing for Chapter 7 bankruptcy protection, with plans to liquidate its valuable real estate assets.
With nearly $50 million in debt to bondholders, the university’s assets and liabilities are estimated to be between $50 million and $100 million. Among the assets listed in the bankruptcy filing are several historic buildings located on the Avenue of the Arts on South Broad Street, with Terra Hall at 201 Broad St. standing out as the highest-valued property.
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Efforts for a potential merger between the University of the Arts and Temple University fell through in August, leaving the fate of the properties uncertain. Despite this, Temple University has welcomed over 330 former and prospective UArts students, ensuring they pay the same costs as before.
Meanwhile, the closure of UArts resulted in the displacement of over 600 staff members and faculty, with the United Academics of Philly union advocating for fair negotiations regarding severance payments for those affected.
In response to the bankruptcy filing, the UAP issued a statement emphasizing the importance of prioritizing the well-being of the affected individuals over financial interests: “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.”