Shuttered Philadelphia arts school, in bond default, files for bankruptcy

The University of the Arts, a private college in Philadelphia that abruptly closed its doors in June, filed for bankruptcy Friday, two weeks after it faced are struggling to stay competitive in a landscape with fewer students going to college. At least 23 institutions have closed or merged so far this year, according to data compiled by BestColleges. 

University of the Arts had a student-faculty ratio of 7.5 to 1 and offered degrees such as a master of music and master of fine arts, according to its website.

Enrollment dropped precipitously ahead of the closing, with the number of full-time students falling to about 1,100 in the 2023-24 school year compared to 1,800 in the 2019-20 year, according to a regulatory filing.

The university issued revenue bonds in 2017 through a conduit issuer, the Philadelphia Authority for Industrial Development.

University of the Arts has hired restructuring firm Alvarez & Marsal as an adviser. Richard Placey, the university’s bankruptcy attorney, didn’t immediately respond to an emailed request for comment. 

Gordon Gendler, a senior vice president of UMB Bank, the trustee, didn’t immediately return a call seeking comment.