Longacre School Closing

[AndreaKnowsBest]

Is it true that Longacre is closing? Wasn't it literally just bought by a group?

Do Bridewell get to keep and sell off the land? Is it asset stripping? I'm wondering what the motive was? It was sold as falling numbers at Longacre at the time and they was in trouble.

Mergers on the face of it are sold as making the merged schools more secure within the backing of a long established group. But from the accounts above?

In state when a school joins a MAT there is IME very rigorous due diligence of choosing a MAT that can take over a year with external expert advice sought?

However I know rules are very different from state.

It’s not necessarily a red flag if a “parent” company has less money than the companies it owns/manages. The “parent” is essentially an administrator, the companies under it are the ones that have to bear the operational costs.

Jumping on the thread as the news of Longacre was new to me as just heard some pupils from there are joining my son’s school- St Ed’s.

I hadn’t even appreciated that Bridewells had integrated Longacre last year, but I had heard a while ago that KEWS might be struggling. So it all seems a bit convenient now for Longacre to be closed and for the Head to move. Glad he/she have sorted themselves out! Meanwhile I can’t imagine how unsettling and stressful it is for the children and parents to move school. So sorry for anyone in this situation.

I would also be wary of motives of an Aldro integration into Edgeborough in the long term for similar reasons .

At some point I’ll be looking at sixth form schools and the finances will be top of the list before we make final decisions

I have children at Longacre and am just devastated by this news. I had always been worried about the merger with KES as I had heard they had their own problems before the merger. I am concerned for my children what it will be like to be in a school that is closing. I am wondering if anyone here has any experience of this with The Royal School or Belmont or anywhere else? I am prepared to move before the end of the year if it brings a stable environment for my children.

I'd look at where the kids from The Royal went when that closed.

A friends dd was at Alton which closed in year 10, she moved her to The Royal that closed in year 11. So two schools going bust within a year. I wanted send dd to the Royal. She is going to state secondary now

Good article here from the ISC: https://www.isc.co.uk/media/7058/school-transactions-advice-october-2020-2.pdf

But essentially with a "merger" of two charities, the dominant charity will end up owning the other's assets and and liabilities. The "deal" will only ever be attractive to the dominant school if the weaker party's assets exceed their liabilities, so that in the event of liquidation, the outcome results in a positive balance.

The comment about due diligence is interesting as this isn't a commercial transaction, therefore the concept of a "fair price" doesn't apply, the due diligence is limited to making sure that the disclosures on both sides are accurate, not whether the deal is fair to both parties. The weaker party's bargaining power will depend on whether they have any other cards to play, eg: if they've been approached by another school or whether they can afford to walk away if they don't get the terms they want.

The quality of the deal is also based on the incentives that are guiding the decisions of the school's board of governors / trustees. The Head is only one of maybe 10 voices making the ultimate decision. Boards of small independent schools are often made up of retired individuals and senior leadership educators whose day jobs are with other schools, neither of which will be motivated to fight the good fight for a school that is already struggling. They will want to make a clean personal exit.

On the subject of debt, it does't necessarily spell doom and gloom, as long as the debt is well structured (reasonable repayment scheme, low interest rate, opportunities to renegotiate with minimal penalties) and the school can afford to meet its monthly liabilities (interest payments). Debt is a viable path in order to expand or upgrade (for schools without endowments or a well oiled fundraising / development arm), as long as the decision has been made based on sound financial planning and admissions projections.

On a human level, very sad for all the Longacre families and staff, I have several friends whose children have enjoyed their time there.

It was awful at the time but actually once the schools are sorted it just becomes a bump in the road. I think it depends on your child and their age. The other schools will help as much as they can, so look around at what suits your child. If you can plan to move after Easter, allows children to settle in new school and school will be winding down as other parents will do same. The kids often know each other at different schools so they may settle in. If the school isn’t right move. It is awful at the time but you will get through it. Good luck.

Aside from this obvious marketing persons post from Pennthorpe, does anyone who had thier child at Longacre received any offers from Pennthorpe? Keen to know how desperate they are

The saga with Longacre continues. A dedicated set of parents have been working very hard and in their own time to attract an investor and or high net worth individuals to save the school. They had a viable and credible investor who they introduced to Bridewell (King Edwards of Witley & Barrow Hills). Bridewell appear to have done very little to explore this option and have now said they are not a viable option. They obviously want to sell the land to a developer for the highest price. The parents are still trying very hard to save the school in the face of people who obviously don't care about the pupils, teachers and paying customers. They should be taking less money to ensure this site remains as a school not maximising money to have the land developed. The investor was interested in the site being for a school not houses.

What are they thinking? This seems like a PR nightmare for King Edwards of Witley and Barrow Hills. It could have been a great story: parents and Bridewell work together to keep Longacre.

It's not over yet these Longacre parents really care about this school and are continuing in their discussions with investors.

The saga continues.....

@Emeraldwoods very interesting and confirms the suspicion that this was the plan all along. Also, all the staff will now be securing new jobs (the teacher I know has done) having been made redundant, and deposits paid for new school places for the pupils so it’s not so easy to just say “we’ll reopen in September” even if a financial backer could be found.

This is incredibly sad and heartbreaking they do not appear to be considering selling to other operators. It feels as if Bridewell haven’t really given Longacre a chance - was the school just a land banking exercise for a sale to a developer?

How do people foresee this effecting the other Bridewell schools? We’re moving from abroad back to Surrey and had been considering King Edward’s or Barrow Hills.

Wow. How heartbreaking. It looks as though they’re incredibly focussed on closing the site and selling the land.

I don’t know anyone with children at Longacre, but know a Mum from my son’s school (Aldro) who is friendly with someone is in the process of moving their child to our school. She has said that lots of parents are turning down the offer of Barrow Hills out of principle and are looking elsewhere!

It’s so amazing that there’s a dedicated group of you to fight for this. I’m rooting for you, despite the pushback you are getting from Bridewell. I’ll be following this closely. Please keep us updated.

Wishing you lots of luck!

I’ve said before just feel sorry for the kids - they are young and will hopefully bounce back with the support of parents/community. I’m sure parents do what is best for your children (sometimes that means putting principle to one side or not - we have probably all had conundrums like these in parenting journeys). I’m all this I am slightly puzzled by the criticism of Bridewell in the specific facts of this situation (and have been following it closely).I’d be very focussed on the Longacre governors/ governance? Surely if the school was heading into a difficult moment (there appears to be some dispute from parents as to what the state of health of Longacre was/is - numbers look like they were declining) the governors duty was to speak to stakeholders (not just Bridewell but any other schools and investors confidentially) and explore all options at that stage? I would have thought they would try to secure some assurances with any partner at that stage - again possibly the situation was so bad that there was no bargaining power/ no other viable offers? Obviously the landscape for small prep schools (even brilliant ones) to go it alone is challenging - there is no guarantee through investors or mergers as has been seen in other situations but it would be interesting to understand what the deliberations looked like?Im not commenting on Longacre governors as I don’t know them but there is often varying quality of governors in small independent prep schools (some just see it as a social / gossip parlour/ status thing without bringing much professional rigour to the role tbh).

I’m not sure it will have any material effect? It’s a bit like hunger games re small preps in Surrey at the moment so perhaps taking out one may bolster numbers elsewhere/ help those that can hang on. Bridewell funding structure is different to a lot of schools so you should look at that - the other posts in this segment seem to suggest that Bridewell may make a profit/ turn on selling Longacre site which may bolster coffers? - Im speculating (wildly) and haven’t got a clue whether that is even remotely possible (if you look at the Royal School site in Haslemere many people said the same about that but nothing has really happened / planning is difficult). Anyways full disclosure - I have experience of Barrow Hills and kids in King Edward’s and my kids experience is extremely positive and they are flying so I’m pretty happy at the moment (obviously everyone has their own experience - just relaying mine - you have to diligence what is right for your kid).KESW in particular more diverse through the school then most if not all the schools I saw in Surrey (particularly sixth form which has kids from across the globe all mixing) which may or may not be a factor if you are coming from overseas back to Surrey. Hope this helps.

@PostmanP when Longacre merged with Bridewell last year, it’s governance was taken over by Bridewell, with Longacre’s chair of governors (who made the decision to merge) becoming part of the Bridewell court of governors.

What the Bridewell Foundation is doing is so damaging to their reputation and, by association, Barrow Hills and King Edward’s Witley. Many Longacre parents believe that the only conclusion that can be drawn from recent events is that Bridewell have had a commercial buyer identified for the land all along.

Bridewell did not ‘purchase’ Longacre. They merged at no cost to themselves. Longacre had 5million in the bank and 2 million of debt (managed debt for building / infrastructure development). Bridewell paid off that 2million debt at point of merge (but note they received 5 million of Longacre’s money!). They then undertook barely any marketing activities (NB open days are quite key, as is someone in an admissions role) and invested nothing in the school - they did nothing while numbers fell. This has meant a shortfall between fees and costs this year, but the money they used to cover this shortfall was Longacre’s - note Bridewell were still £3million up after paying off Longacre’s debt and the shortfall was nowhere near that amount)

Fast forward to now and Bridewell have had an offer from an investor who wishes to keep the site as a school. Parents are watching this situation keenly. Why wouldn’t Bridewell accept this offer? They haven’t lost anything financially at this point from their merge with Longacre, in fact financially they have still gained and anything they receive from an investor would represent a further gain.

Why? Is it greed? Do they have a commercial investor who will pay more to redevelop the site for housing? Do they have such a desperate need for financial security for their other two schools?

It is interesting that the Bridewell Foundation have not been able to find a potential educational investor to buy the school over the last 6 months while a group of parents at the school managed to in a couple of weeks. Did they even try…? And if not why not?

When the consultation was announced it was also announced that Longacre’s Head would move to Barrow Hills to become the head there. This, along with a list of other incentives (first term free, a year of free bus travel and free uniform) was all part of a plan to absorb Longacre children into Barrow Hills and boost Barrow Hills numbers. Unsurprisingly, given what Bridewell are doing, there haven’t been many takers! Yesterday parents received a letter to say that Longacre’s current head will no longer be moving to Barrow Hills and the BH current head will stay in his current role.

As a parent im really saddened (but not surprised) by Longacre’s closure so soon after the merger was delivered. It was a nice little school.

Just contrast these Bridewell shenanigans with Rydes Hill and Tormead: same falling numbers at RH and cost pressures, yet Tormead invested properly, moved it to co-ed, shared facilities and shuttles, strengthened the nursery, and the school is now thriving and growing. Parents rave about it. This could've been the same story at Longacre, but sadly I think PPs are right and keeping the school was never the plan.

Bridewell chose a different path. Jeremy Hunt urged them to consider the credible third-party operator who wanted to buy and keep running Longacre as a school, but seemingly rheyre not up for it. It feels like they don’t want to sell it on because a stronger, invested rival nearby could compete directly with Barrow Hills, plus they'd likely rather have the sale cash in the bank to boulster the remaining schools.

A missed opportunity for the local community and the children. Sad times

Thank you - all this / was already understood - my question is not about what happened post merger it is why did this chain of events happen in the first place which none of us have a concrete answer for. It takes two to tango and my question remains unanswered as to why did the governors of Longacre (ie pre-merger) act as they did and with what information in undertaking the merger transaction?Did they exercise their fiduciary duties to Longacre in the right and proper manner? Did they take proper advice?If Longacres asset/cash position was fairly robust as you say why did the governors at that time pre merger agree to the initial merger with no/ limited guard rails? Have Longacre parents asked this? We can both speculate about whether another investor would actually kept the school live in the short/medium term - all I have to go on is the general state of the small independent prep school market (unattractive) and the multiple failures in the Surrey area to date - it’s easy for an investor to say they would run the school but the realties of the sector is why we are seeing mergers/alignment with larger schools and closure of small schools no?

Again the decision making of the Longacre governors premerger should be scrutinised. I do also find it slightly counter-intuitive that Bridewell would elect to close a school if it was viable as it would have been a feeder to KESW in addition to Barrow Hills, particularly as Longacre only runs to year 6 so notionally more chance of kids going directly to an 11 to 18 school like KESW from Longacre than to another prep until 13?

@PostmanP Thanks for replying, the location of these schools are perfect.

I am not sure what to make of this Longacre business, could it be signalling financial difficultly for Barrow Hills or King Edward’s? I note from the gov websites that Barrow Hills is operating at 2/3 its capacity. Perhaps Bridewell wants to focus on one prep school feeding directly into King Edward’s, rather than two prep schools? The location of Longacre is not particularly close to King Edward’s, it’s closer geographically to Guildford. Did many of the Longacre pupils continue to King Edward’s? Perhaps this was the key consideration.

No probs. From my experiences- kids travel from as far as Woking to KESW so the Shalford location of Longacre is not an issue. Yes, kids did go from Longacre to KESW (less than 20min drive between the two at peak times) which, again, why I think it would be counterintuitive for Bridewell to deliberately seek to close a feeder school and suffer the reputational blowback (apparent here from seeming backlash)and speculation around this course of action. Maybe I’m a contrarian by nature but the actions of Bridewell strike me as a sign of strength and confidence- it takes a few deep breathes for a weak Bridewell (if that is what the speculation is - I’m not seeing any evidence of weakness in Bridewell accounts) to pick up a weakened school even on an opportunistic basis - and execution of such a strategy that has been suggested is not a walk in the park. Better in some ways to have never merged and just let Longacre fail if it was heading in that direction (which must have been the case for the governors of Longacre to agree a merger?). I get why Longacre parents feel sore - I probably would too - but objectively I’m also not seeing the offer of places/ uniform and (even interim) continuity at BH as anything but helpful in a stressful situation for kids and parents? Should they have not offered this as it looks to obvious a strategy to get numbers in?Speaking to parents at other closed schools their consistent complaint was of no notice and no safety net offered by closing schools in terms of ensuring they kid had a place at a school somewhere local for the next term.Bridewell offered that (and yes there is mutual benefit of course). I have no dog in the fight - and people want someone to blame - that is only natural. I am just seeing Bridewell as an easy (and possibly misguided) target in this situation when, if everything was fine at Longacre, why the merger in the first place (let’s be real these transactions always have one dominant and one weaker party notwithstanding chat about shared resources/synergies etc). I see that the head of Longacre has been appointed to head at Windlesham House in Pulborough btw. Good luck to her - that’s a good school (associated with Charterhouse)I hope all the other staff find jobs too (and my main wish alongside that is for Longacre kids to find happy homes in schools elsewhere without too much difficulty (be that Bridewell or non-Bridewell)

@PostmanP Do we have any idea how many students from Longacre will be joining Barrow Hills? I am a bit worried about their numbers, according to the gov website it says there are 193 students with a capacity of 297? I appreciate this might be out of date information. King Edward’s is 471 with a capacity of 600.

https://get-information-schools.service.gov.uk/Establishments/Establishment/Details/125366

https://get-information-schools.service.gov.uk/Establishments/Establishment/Details/125365

Bridewell was never a great fit for Longacre - King Edwards Witley has a different ethos and Longacre pupils have never gone there in droves (maybe 1-3 pupils for senior each year). It became clear that Longacre families were not choosing it even though it was a feeder school this year. I am told that only a couple of the current year 6 pupils are going there despite being offered exam-free guaranteed places. Longacre only going to year 6 has never been an issue - most senior schools in the area have their biggest intake at 11+. It’s only really Cranleigh or Charterhouse that are 13+ entry. Longacre pupils go on to a huge variety of 11+ entry schools (the list is long - there are lots of great options in the area!) and KEW is not a ‘natural’ choice.

Yes parents are questioning the decision to merge with Bridewell in the first place and the governors involved in that decision. But they are also rightly questioning Bridewell’s decision to merge with Longacre, pay nothing for it, invest nothing in it (despite parents being told at point of merger that this would happen), obtain its assets, do nothing to advertise/ increase pupil numbers, decide to close it only one year later and then not be open to an offer from an investor wanting to buy it from them to keep the site as a school. I don’t see this as Bridewell showing strength I see it as a sign of moral corruption.

@Plopo Barrow Hills operating at 2/3 capacity might well be a consideration. At point of consultation, Barrow Hills were able to offer places to all Longacre pupils without moving any extra teaching staff over from Longacre. I am a Longacre parent and very few are considering BH (I think you can count the number from years 2-6 on two hands, and even these are not decided). The announced plan was that the Longacre head would replace BH’s head to entice Longacre pupils to BH. However as Longacre pupils aren’t moving to BH she has found another position at a different school.

I’m not sure what BH’s current numbers are but I’m sure someone in their admissions would be able to give you up to date numbers. I would also look closely at any published finances to make an independent decision. From what I hear a large proportion of KEW’s assets are ringfenced.

@PostmanP you say you have ‘no dog in the fight’ but you also say you have kids at King Edward’s Witley?

Funnily enough I agree with you re kids going to KESW from Longacre - not loads historically and it wouldn’t make sense for year 6s from Longacre to go to BH or to suddenly change the patterns of the past to go to KESW.When I say I have no dog in the fight I mean I’m no a Longacre parent nor do I have any reason to back Bridewells conduct if that fell below a standard (I’m simply a “customer” as a fee laying parent) I’m just saying that Bridewell seems like an easy target when the genesis of this all seems to lie elsewhere if Longacre truly had other options - seen a number of instances where schools get taken over but the buyer / dominant party deems they are not capable of being saved - that is a possibility - there is no unconditional underwrite / limitless resource in any of these situations. That’s what parents want but once a merger happens it’s a large part as to what makes sense commercially/ practically / economically

What’s happening with the head of Barrow Hills now? Is he staying put? It feels a bit unsteady already and any change of head is always massively impactful.