HBCU St. Augustine’s Files for Bankruptcy, Drops Current Accreditation Fight

The current accreditation status is expected to conclude on May 15. SAU leaders say they will focus on supporting students through teach-out agreements and building a pathway toward reaccreditation.

Raleigh, North Carolina’s St. Augustine’s University has announced several changes to position the institution for long-term success, including filing for bankruptcy, leadership changes, and ending litigation related to its accreditation status.

In a news release obtained by BLACK ENTERPRISE, the University’s Board of Trustees decided to initiate a “voluntary Chapter 11 restructuring process.”

“[The decision] reflects a deliberate and strategic step to advance the University’s long-term sustainability while addressing current financial realities,” university leaders wrote in a statement.

The university will continue to operate throughout the process. In the meantime, it said it is working on a reorganization plan to submit to the Court that outlines SAU’s path forward. In the meantime, while leaders develop the plan, some restructuring changes are already underway. Interim President Dr. Jennie Ward-Robinson is stepping down, and the Board has appointed Dr. Verjanis A. Peoples to be interim president.

With the current accreditation status expected to conclude on May 15, SAU leaders say they will focus on supporting students through teach-out agreements, developing non-degree certificates and apprenticeship programs, and building a pathway toward reaccreditation.

“These steps position the University to move forward with clarity and purpose, continuing its mission of preparing students academically, socially, and spiritually for leadership in a complex, diverse, and rapidly changing world,” the university said in a statement.

For the past several years, Saint Augustine’s has faced several financial battles due to lawsuits over unpaid services. The institution has faced financial issues totaling more than $30 million and nearly $10 million in tax liens, as previously reported by BE.

The university was placed on probation after failing to meet accreditation standards and lost its accreditation from the Southern Association of Colleges and Schools Commission on Colleges. The school’s appeal to reinstate its accreditation was denied, prompting a heated town hall meeting on April 11, attended by alumni, current students, and community members.