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Judson College Will Close and File for Chapter 11 Protection

Submitted by jhartgen@abi.org on

An urgent fundraising appeal late last year had appeared to save Judson College, but declining enrollment and wary creditors sealed the historic school’s fate. After 183 years of operation, the Baptist-affiliated college will file for bankruptcy protection and will not reopen for the fall semester, BaptistNews.com reported. College trustees made what they called a “heartbreaking” decision May 6, two days after one of the school’s creditors called the note on a loan that could not be repaid. Additionally, only 12 new students had enrolled for the fall 2021 semester, officials said, adding to the woes of declining enrollment for the all-female school located in Marion, Ala. In April, trustees had approved a 2021-2022 budget, based on confidence the board and administration had in support of “new significant donors to help close the college’s operating deficit,” a school news release explained. In December 2020, Judson officials issued an urgent appeal to donors, explaining the school needed to raise $1.5 million in gifts and pledges to remain open for the spring 2021 semester. President Mark Tew wrote a one-page letter outlining the school’s dire financial situation. He said the school must obtain $500,000 in donations by Dec. 31 and another $1 million in unrestricted pledges to be fulfilled between Jan. 1 and May 31, 2021. By the start of 2021, that appeal appeared to have been successful. The college reported that donors gave $27,665 more than the $500,000 required by year-end and made $584,065 in pledges toward the $1 million needed by May 31. Plans were laid for a full academic year beginning in fall 2021. Inside Higher Education reported that the college raised more than $2.53 million in the academic year just ended.