PHILADELPHIA (KYW Newsradio) — The University of the Arts has filed for bankruptcy.
The 150-year-old school, which abruptly shuttered its doors in June, is now looking to sell its real estate along South Broad Street to help pay off debt to banks and bondholders.
According to the court filing, University of the Arts listed assets and liabilities between $50 million and $100 million. A big portion of the school’s debt is owed to bondholders, which totals $46 million.
Bradley Philbert, president of the school’s faculty union, said the bankruptcy wasn’t unexpected, but still feels disrespected by University of the Arts leadership for not meeting to negotiate severance payments.
“We just want to make sure that members and their families get the money they're owed,” Philbert said.
In July, the union filed charges against the university through the National Labor Relations Board seeking those severance payments.
“We're still in solidarity with one another and we still show up for one another, which is the most important thing we're going to do as this process continues to draw out,” Philbert said.
In late August, a potential merger with Temple University fell through after nearly three months of negotiations failed to yield an agreement for both sides.