The independent school sector is in a weakened position as it tries to recover from Covid-19.

Some schools remain highly profitable, but this is not the case across the board. On the one hand, there are elite public schools, graced with superb facilities, that can charge high fees and operate waiting lists. On the other, are second-tier schools that struggle to attract the brightest pupils, or enough students at all can become trapped in a spiral of failure. Independent schools need to offer high staffing levels to pupil ratios and pay for the upkeep of their buildings and properties. Even though schools benefit from favourable tax treatment and are registered charities, there are a growing number of insolvencies.

Here at Company Debt, we have significant experience in both closing and restructuring schools. Get in touch for a free, no-obligation discussion about your situation with one of our licensed insolvency practitioners.

Education Pressure Points

Insolvency Education

What are the Reasons for Education Insolvency?

Many boarding schools are also reliant on overseas students, but the pandemic has affected this and there is no clear indication if numbers will recover. Figures from the Independent Schools Council showed that 24,674 non-British pupils with parents overseas were on the roll in January 2021, down 15 percent from 28,963 a year earlier. Of these, mainland Chinese students comprised the largest single group, at 6,033, and represented the greatest decline: down nearly 27% from 2020.

Recent years have also seen some independent schools hit by scandals with poor levels of safeguarding, meaning that they can be subject to investigations, prosecutions, and the local authority will not renew their license.

Much will also depend on the UK’s economic recovery. If there is more job uncertainty, then schools fees may become a bridge too far for some parents.

Many language schools that teach English to overseas students are also in a dire financial situation. A number of language schools that were previously seen as well established have closed and subsequently been liquidated as buyers could not be found.

Help for your Insolvent School

If your school is experiencing difficulties, you should not delay seeking advice. Business owners need to address problems and if they put this off, then their options become more limited.

Company Debt provides expert support and advice on the next steps for an insolvent business, whether rescue, recovery, or liquidation.

Insolvency Education

Rescue, Recovery, and Closure Options for Private Schools

We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.

Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.

We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.

As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.

Book My Consultation

If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.

  • Your free consultation will be led by one of our experienced London insolvency practitioners
  • You can speak via phone, online meeting or in person so that we can listen carefully to the facts about your situation
  • The team will provide a preliminary view of the likely best outcome, proposed strategy, and the likely cost
  • We specialise in helping limited company directors needing immediate professional debt advice


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