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PHILIPPI – Alderson Broaddus University filed for bankruptcy Thursday in the United States Bankruptcy Court for the Northern District of West Virginia.
"This action was taken one month after the West Virginia Higher Education Policy Commission directed AB to offer only limited classes to approximately 20 students during the fall semester," an AB press statement released Thursday evening said. "The inability of AB to receive anticipated normal tuition revenue for the fall semester precluded AB's continued operation.
"Although AB anticipates receiving an Employee Retention Credit payment from the Internal Revenue Service in an amount in excess of $1,000,000, those funds were not received in time to permit ongoing operation of AB. The AB Board of Trustees released a statement today notifying members of the campus community of their decision."
"In the last month, AB arranged for all students who were enrolled for the fall semester to continue their education at other institutions of higher education," Thursday evening’s AB press release states. "Student academic and financial records have been transferred to West Virginia Wesleyan College which will make transcripts and other information available to former AB students.
"In addition, all employees have been encouraged to seek unemployment insurance benefits. The affairs of AB will now be handled by the trustee who will be appointed by the Bankruptcy Court to oversee the collection and liquidation of AB's assets and the payment of appropriate claims made by creditors."
"The AB Board is grateful to the students, employees, alumni and donors who have embodied the Christian spirit of the University, and through them, the legacy of AB will live on," said AB Board Chair James Garvin.
In August, the West Virginia Higher Education Policy Commission voted to revoke Alderson Broaddus' authorization to confer degrees in the state.
The order prevents Alderson Broaddus from conferring any degrees after Dec. 31, and the university is prohibited from enrolling any more students.
Later that week, the Higher Learning Commission announced that "Alderson Broaddus University in Philippi, West Virginia, voluntarily resigned its accreditation with the Higher Learning Commission, effective Dec.31, 2023, due to its upcoming closure."
Later in August, two class action complaints were filed against Alderson Broaddus University, on behalf of students and faculty at the school.
The complaints were filed Aug. 8 in Kanawha County Circuit Court in Charleston. The defendants in both complaints are listed as Alderson Broaddus University and James Garvin, chair of the AB Board of Trustees and Governors.
The two class action complaints include claims of fraud, misrepresentation and breach of contract.