Closure/shut down of a private/independent school

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I would like to ask a question to those who have experienced a private school closure: What were/are the signs or indications that a private school is/ was closing down or at risk of closing down?

Also, if you knew that the school were having financial difficulties but had no written proof, would you warn other parents or keep stum?

I'd imagine problems with the staff first, they wouldn't be paid so would leave, less qualified staff may be drafted in or classes would be combined. Dropping pupil numbers is also a give away, as is the selling of land. General repairs are not carried out so the building and grounds will slide. Some owners will sell the school without notifying the parents until this has been done (first hand experience here), they don't want the parents removing their children so the first they know is a letter telling them the ownership of the school changes. It can be hard to tell if there's financial problems, it's helpful to look at your local authority's list of planning applications though, incase the school is being turned into flats (has been done). I'd keep stum without evidence but would look into the other options.

Oh Belle, that's exactly what is happening. Staff have been laid off. The long term staff (that is more than 10 years service) have left or are leaving. The school looks a mess.

It was one of the school governor's that confinded in me that the school is in financial trouble. I didn't believe them at first but this week a member of staff told me that the school told them that their pay would be late. I have been asked not to tell anyone - the member of staff said she would deny it anyway. I find this depressing because now is the time when the school should be at its "richest" so to speak (fees collected etc) yet the school seems to be already struggling to pay its staff. I also know of 1 parent who is paying the school £10,000 a term. If the school closes, she will loose all that money, won't she?

By the way Belle, was the school called St Elphins? I read about it on the ATL website.

I am hoping that the parent will spot the signs but then again, if a parent doesn't know the governors, doesn't know the maintenance staff (both grounds and IT) have been laid off and is unaware about staffing problems, they are unlikely to realise or appreciate the school's situation.

You're right though, I'd better keep stumm.

I'd suggest she finds some sort of insurance for the fees, if it does go under then she'll be one of many, the tax man takes his money first so there may be nothing left by the time they get to her. It wasn't St Elphins, it was one in East Midlands. The (new) head's still there, I pulled ds out as he had views that I didn't share. I'd look around at other schools, usually the local preps/independents 'know' what's going on as gossip spreads quickly.

Things are beginning to make sense. I pray that the school will give the staff and pupils some notice, and make it to the end of term, otherwise there will be mayhem.
Hopefully, I will know more in due course. I guess I was hoping for something to write that everything will be alright, that their school was in financial trouble as well but was salvaged in time by some miracle.

If you've been told by a governor that the school's in trouble then it's really not looking great. I've sent you a DM about the school here, different circumstances though. It's going to be mayhem regardless of they timings, I've heard of some places literally not open in the morning. Best of luck, I really do hope that things improve. I would find some sort of insurance policy to cover the fees, schools sometimes offer this but if they are sinking then they may not have paid this.

I'd say a good indication would be that they'd applied to be a free school

An independent school is a business. Like all businesses, it can only operate if the stakeholders have confidence in it and trust it.
Rumours flew around our school, not least when a planning application for change of use was put in. Once a few parents lose faith and leave then finances become even worse and it becomes a self-fulfilling prophesy. We had some parents who tried to fight, but it was doomed.

You have to think about self-preservation. There are only so many good spaces - do you want to tip off other parents who will be your competitors for those scarce places? But make sure you don't go from frying pan to fire. The smaller or newer the school, the less finincial reserves it has.

Get your notice in before the end of term. You can always withdraw it.

Thank you all for your comments and advice; I will definiftely be taking them on board.

Belle - I am about to reply to your DM. Thank you for taking the time to reply.

Even though it's 11:30 on a Sunday morning, I could do with a although perhaps a Sunday Service down at the church in these times would be more appropriate.

The pub next door to me opens at 12. There's always options, I've read about one school where the parents raised the capital and took over the school.

There are lots of indicators that a school is struggling.

Asking for fees in advance, asking for cheques for extras rather than putting them on the bill, asking parents to buy their own textbooks.

Changing the discount system - bursaries, sibling discounts.

Not doing obvious maintenance. Staff redundancies and not replacing teachers who have left.

Reducing entrance criteria - going co-ed, becoming non-selective, merging with other schools.

Almost all private schools are at risk of closing down. Times are hard and the way the cash flow system works means that there are few reserves to cover hard times. Very few schools have big endowments, and even those that do are at the mercy of the stock exchange.

Most private schools are owned by charitable trusts, and you can examine their latest published accounts on the Charity Commission website for free. This will often give you clear information on income and costs, and in particular whether the school is loss-making or profitable. And even if the school is profitable it can be informative to see where the money goes. We crossed one school off our list of potential schools when we saw how little it spent on books for example.

Even if the school isn't charitable you may be able to see the same information on Companies House, though there is a charge of £1 per set of accounts on there.

Sorry to revive this thread, but i did so because I wouldn't want other parents to go through what I'm going through at the moment.

Please take this advice. If you think like I was thinking back on the 24th Sept, do not hesitate to give notice. Trust me, it will save you A LOT of heartache.

Do not rely on other parents to forewarn you or tip you off. If they do know the school is in financial trouble and have evidence of such, they will be under considerable pressure to remain quiet and that parental instinct of self-preservation (as described by leavingthesinkingship) will kick in. You have no idea how strong my sense of panic has become.

If in doubt, Go onto Companies House as a matter of urgency. If they have filed close to or beyond the deadline, take the hint. If there is anything of concern, give notice to the school ASAP. I followed Ladymuck's advice about going to Companies House and the news was not good, but I fooled myself into thinking things would turn out ok in the end. In my case, it is in the process of ending and I can't get out!

I would like to one MN in particular for her support. I am feeling isolated and vulnerable at the moment and she has been my tower of strength and my only comfort. Hopefully, when this nightmare ends (and it's not far off) we could meet up for coffee or a .

Sounds dreadful. A prep school near us that had been established for years closed very suddenly this summer. Parents only knew there were any problems once they were back at school for the summer term. No one seemed to have had an incling that there was anything wrong at all. There was talk about parents trying to take over the school but I think it was such sort notice it wasn't possible to do anything in the time available.