Alderson Broaddus University, a private Baptist university in West Virginia where most students play varsity sports, filed for bankruptcy with plans to liquidate despite a last-minute rescue effort by the state’s governor.
(Bloomberg) — Alderson Broaddus University, a private Baptist university in West Virginia where most students play varsity sports, filed for bankruptcy with plans to liquidate despite a last-minute rescue effort by the state’s governor.
The university on Thursday filed a Chapter 7 bankruptcy petition, the first step toward handing control of the institution to a court-approved liquidator. Philippi, West Virginia-based Alderson Broaddus — which counts roughly 700 students — has for years struggled financially.
The university sold municipal bonds in 2012 to fund campus projects, including a stadium that featured a president’s box and student housing. When the school sold bonds, it disclosed that it had been experiencing longstanding financial challenges and that enrollment had been dropping.
The school has a Division II football team, along with other sports programs like lacrosse and soccer. Over 500 students participated in its varsity men’s and women’s athletic teams in 2022, according to Department of Education data. Men’s football accounted for over 100 students.
Alderson Broaddus has about $3 million of muni bonds outstanding, according to data compiled by Bloomberg. The college and its endowment provided a guarantee on the bond payments, bond documents say. The university listed assets of no more than $10 million and liabilities of at least that amount in its bankruptcy petition.
Representatives for Alderson Broaddus didn’t immediately respond to requests for comment.
Rich Heritage
The school was created in 1932 through a merger of two institutions that passed on a “rich Christian heritage,” bond documents say. Tuition and fees cost $31,500 for the 2022-23 academic year, according to the National Center for Education Statistics.
In late July, Governor Jim Justice stepped in to delay a state board vote to strip the university’s ability to grant degrees. “No one wants to see this university close if there’s a way to avoid it,” Justice said in a statement at the time. “It may very well be inevitable, but we’re going to try really hard to find a pathway.”
Days later, though, the West Virginia Higher Education Policy Commission voted to revoke the school’s authorization to confer degrees effective December 31 and to create a plan to wind down operations. The commission said in a statement that the school’s “financial condition renders the institution unable to create a stable, effective, and safe learning environment for its students.”
At a meeting, commission officials expressed concern that the college was at risk of closing mid-semester, causing students who had paid tuition to lose their money.
–With assistance from Nic Querolo.
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