Letter from DC school- how would you interpret it?

[Silverbook]

We got this letter from our DC’s school. Parents within our year groups are divided with some thinking it’s essentially the first step of the school closing and others taking it at face value and it’s a restructuring.

What does the wisdom of MN think?

YANBU- closure is coming
YABU- it’s a re-structure

Quite blurred and tricky to read, can you summarise?

We had friends who got similar and it was basically an unofficial request for parents to fill the shortfall. They did give, but not enough, and it closed not long after. If you need a school place, I would apply for one now.

They are trying to avoid closure but the changes required make closure inevitable relatively soon. I suspect they’ll limp on another year and then close.

Your screenshots are very blurry… are they talking about a merger? Lots of private schools, especially smaller ones, are looking into that at the moment.

I would consider your options carefully. Unfortunately it reads as if they are on extremely shaky ground financially, with no guarantees the school will remain open.

Basically they are in financial difficulty. There was an investor/school group who pulled out last min. They are looking to “restructure” without clarifying what this old look like and it finishes with asking for donations. Basically.

They are desperately trying to find a replacement for the investor who pulled out last minute. Unfortunately, with all the uncertainty around fees & VAT, private schools aren’t a very attractive risk for investors at the moment. I hate to say it OP, but I’d be looking for another school immediately. After sending a letter like that to parents, huge numbers will pull their kids out, further worsening the situation. How stressful for you, I hope it all works out OK.

It’s in serious financial shit. Don’t pay anything and start looking for another place.

A friend’s school did this- harassed parents to pay their fees by the first day then announced they’d gone bust and immediate closure on day two. Parents went on the list of creditors.

Look at their accounts and see what they’re reserves and cash position look like.

Also look at what the going concern position is. If they had less than a term’s free cash I’d be surprised they were signed off without some jiggery pokery.

I forgot to add that I’ve looked at the accounts…..losing approx 400k-600k a year for 5/6 years 😬

Would be considering options particularly if children about to start on external qualifications and moving schools will cause more issues than if in younger years

Wowzers, poor school, and poor you as a parent. It’s so difficult for independents at the moment.

This does sound like a last ditch attempt, but they’re also reminding you of their credentials so keen to keep you on board. I think this might be firefighting - they are keen to squash the rumours but also be brutally honest about where they are. Great stance - be ahead of the playground gossip. What does the school marketing look like at the moment? Have there been many key staff departures?

In your shoes I would research other schools, and have a plan in place but if I were happy with this setting then I would wait and see - they do sound desperate, but also aware of the struggles and keen to resolve. Best of luck.

The Head left less than a year ago and the marketing has ramped up significantly in the last year…..

This is dreadful. They have had poor leadership for a long time if this is the situation.

Have they depleted their reserves?