Saint Augustine’s University files for Chapter 11 bankruptcy
Saint Augustine’s University files for Chapter 11 bankruptcy, court documents filed Monday in the U.S. Bankruptcy Court for the Eastern District of North Carolina confirm. The legendary St. Aug’s is reorganizing its crushing debt load while keeping the doors wide open for students.
The university, founded in 1867 and one of the oldest HBCUs in the country, is staring down liabilities between $50 million and $100 million across more than 200 but fewer than 1,000 creditors. That includes $14.4 million owed to the IRS, another $8 million-plus to federal agencies like the Department of Education, and $1.6 million to the North Carolina Department of Revenue. Their Assets sit somewhere between $100 million and $500 million.
St. Aug’s is NOT closing. University officials say Saint Augustine’s University files for Chapter 11 bankruptcy as a “strategic step” to tackle “current financial realities” and build a stronger future.
What Led to Saint Augustine’s University Filing for Chapter 11 Bankruptcy?
St. Aug’s has been battling serious headwinds for years — plunging enrollment, accreditation problems, and mounting debts that reportedly topped $47 million as recently as last summer. The school even took out high-interest loans (one report mentioned rates as high as 24%) just to stay afloat.
