Sweet Briar College Closes

Yes, well I'm sure the shouting will help to keep the college open.:saevilw:

 

Plot twist...

Virginia Supreme Court temporarily blocks Sweet Briar College closure | Lynchburg Area & Bedford News - WDBJ7.com Central and Southwest VA

 

What's really interesting are the comments about the recent court action. Most supporters are saying things like "one step closer!"

One step closer to what? The school will still be broke after court action (more so because the school needs to defend itself in court). So you've forced a college to remain open despite its insolvency. Yay? See how jubilant you are when the school burns through the remainder of its endowment and can't make payroll and THEN closes.

This was an opportunity for Sweet Briar to die peacefully in its sleep. But, instead, some overly emotional people are intent on keeping it on a respirator until it dies of sepsis months from now. People need to relax. Nothing is forever.

 

Hmmm. If nothing is forever and eternity is forever then it follows that eternity is nothing. That seems a sad idea to me so I'll change the subject.

I'm glad this story is not just going away. If, through some magical/legal process the school survives then it may ultimately become a better, healthier organization for having gone through the process.

 

Compelling an enterprise to operate when it has no money? Usual result: Eventually, the lights go out and the people stop working because they haven't been paid. Customers stop coming because there is nothing left for them to buy.

I think "magic" in the form of long-term financial "life support" is seldom viable in such cases. But governments of all kinds often do it against all odds, so...

J.

 

I understand your point and I can't say you're wrong. At the same time, there seems to be a bunch of people, much closer to the situation than you or me, who seem to feel that the school can somehow be resurrected.

 

I have to admit to a gut impression at this time that Sweet Briar will survive. For another example of a college that went down the tubes and made a (so-far) successful comeback, one need only look at an institution that is more relevant to non-traditional education: Antioch College in Yellow Springs, OH.

The bottom line is money, and the bottom line of money is donations from alumni that can kick-start a recovery. It worked so well for Antioch that when they finally reopened, they offered free tuition to the first incoming class.

By the way, in the theatre world we just saw a similar example of a show that survived thanks to a financial influx from a dedicated supporter: The Fantasticks, the longest running show in NYC (since 1960, with only a brief interruption when they changed theatres). The show is best known for the song “Try to Remember” and the start it gave to someone who would become a major force in musical theatre – Jerry Orbach (who originated the role of El Gallo), who would, years later, become even more famous as Det. Lenny Briscoe on Law and Order.

Sweet Briar could accomplish its survival through such an influx from alumni, accompanied by kicking out its existing board and administration and starting with a fresh crew.

 

It all really comes down to a simple question: What is the status of the $68M endowment?

Is it just sitting there? Did the administration try to shut the doors because they refused to tap into the endowment? If so, then an influx of alumnae cash and a change in management may see the school survive with only a slight sacrifice of endowment to carry them through this difficult time.

Equally possible, however, is that SBC might have maxed out their lines of credit. So, they may have the full $68M on the books but if they owe $70M then they don't really have $68M.

So, it's possible we're dealing with incompetent leadership here and the alumnae outrage is warranted. But, if we're placing bets, I would put my money on the school is broke and some people are letting their emotions overrule their good senses in trying to force the school to die next year rather than this year.

My skepticism is largely based upon watching parents make asses out of themselves when their favorite Catholic schools closed. A good friend of mine (and a more than capable professional) was rather insistent that his former high school "had money" because they had $500k spread over several scholarship funds. They didn't have any money in their operating account, mind you. And the diocese had to cut final paychecks for the teachers (because they literally had zero dollars in their checking account). He, and several of his friends and family members thought it would be a simple proposition to "just use" the scholarship money to keep the school afloat. I refuse to believe he was literally unable to comprehend the concept of restricted funds and I suspect it was merely a matter of his emotions forcing his reason into the backseat.

So admittedly I'm projecting my own experiences onto this whole debacle. Clearly the alumnae were able to convince a judge. So there must be some merit to their claims that SBC could continue. It will be interesting to see how it turns out.

Alternatively, I'm sure Laureate might be interested in buying them.

 

Sweet Briar College’s response to June 9 Virginia Supreme Court ruling
June 9, 2015

The Virginia Supreme Court’s decision is unlikely to have significant impact on the pending litigation. The court did not rule on the merits on any legal or factual issues, including whether Sweet Briar College is both a corporation and trustee or whether the Amherst County attorney has legal standing to file a claim under the Virginia Uniform Trust Code. It is also important to note the court did not grant any new injunctive relief. Rather, it extended by nine days an injunction already in place enjoining the use of certain solicited donations. Another hearing in this matter would have been necessary regardless of today’s ruling.

 

Sweet Briar claims declining enrollment and rural location were deciding factors

Here’s why Sweet Briar collapsed: ‘They chose not to enroll.’ - The Washington Post

 

Evidence of administrative ineptitude emerges

Sweet Briar College was spending millions on unexplained 'administrative expenses' - Business Insider

 

Sweet Briar reaches deal to stay open

http://www.nytimes.com/2015/06/21/us/sweet-briar-reaches-deal-to-stay-open.html?_r=0

 

such pessimisim

 

OK, what's your bet? One year? Five?

 

If Steve is right - and as he says, it's arithmetic, so I think he is - there's another potential bump in the road ahead:

To remain accredited, an institution has to meet set financial solvency guidelines. If a school teeters on the brink - or worse, goes over it - then down goes the accreditation, regardless of academic quality. That's happened before. And once the accreditation has been lost, schools have closed.

I wouldn't want to see that happen to Sweetbriar. That would be an awful end for a school with a long and good reputation.

J.

 

I'm hardly reading these stories anymore but here they are . . .

http://www.nytimes.com/2015/06/23/us/virginia-judge-approves-deal-to-keep-sweet-briar-college-open.html?ref=education

http://www.nytimes.com/2015/06/24/us/sweet-briar-collegeis-saved-but-not-in-the-clear.html?ref=education

 

I'm searching for a 12 step program for people who are addicted to Sweet Briar stories. In the meantime, here's the next one:

Sweet Briar College saviors say they've made 1st rescue payment early; doubled the amount | Fox News