A Brooklyn prep school filed for chapter 11 bankruptcy on Monday, facing declining enrollment that it says stems from negative publicity about a 2008 foreclosure action, the Wall Street Journal reported today. Adelphi Academy of Brooklyn said that it filed for bankruptcy because it’s been unable to operate profitably after enrollment dropped following 2008 news reports of a foreclosure by its lender, Metropolitan National Bank, which holds a $6.2 million note, according to court documents. The school said that while it disputes the “technical default” that caused Metropolitan to take action against it, “the resulting negative publicity significantly impacted the debtor’s reputation and resources and despite continued efforts, its student enrollment declined.” Current enrollment is at 100 students, according to court documents.
