Education

Brown Schools Inc. Shuts Its Doors

By Rhea R. Borja — April 12, 2005 1 min read
  • Save to favorites
  • Print

Brown Schools Inc., a for-profit company that runs therapeutic education programs for teenagers who have emotional or behavioral problems, abruptly filed for Chapter 7 liquidation in U.S. Bankruptcy Court in Wilmington, Del., late last month.

The move caused the Austin, Texas-based company’s 11 boarding schools and other educational facilities in California, Florida, Idaho, Texas, and Vermont to close their doors immediately.

Brown Schools listed in a bankruptcy petition estimated debts of up to $50 million, and assets of up to $10 million.

“It is desirable and in the best interest” of the privately-held company, its stockholders, and its creditors that Brown Schools file for Chapter 7 liquidation, according to a statement by the company’s board of directors.

Company officials were unavailable for comment last week.

The filing also contains a list of 40 creditors with the largest unsecured claims. They include a $1.5 million arbitration settlement to Aramark Management Services and $1.5 million in legal fees and legal settlements to law firms and individuals in five states.

Brown Schools Inc. and its affiliates have been the subject of lawsuits claiming students were abused or neglected at its facilities.

Texas regulators had also accused a Brown wilderness camp near Austin of physical abuse and neglect in the death of a 17-year-old student in 2002. But a Mason County grand jury later stated that evidence in the case would not support criminal charges against anyone.

The bankruptcy filing took many people by surprise.

One parent, George Gowen III, was attending a parent-staff conference when the announcement was made. His 15-year-old son attended Brown Schools’ Boulder Creek Academy in Sandpoint, Idaho.

“It was as if a bomb had gone off,” Mr. Gowen said of staff and parents’ responses. “The effect was more like that of a sudden death … rather than the end of a business.”

Events

Classroom Technology Webinar How Pandemic Tech Is (and Is Not) Transforming K-12 Schools
The COVID-19 pandemic—and the resulting rise in virtual learning and big investments in digital learning tools— helped educators propel their technology skills to the next level. Teachers have become more adept at using learning management
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Data Webinar
Using Integrated Analytics To Uncover Student Needs
Overwhelmed by data? Learn how an integrated approach to data analytics can help.

Content provided by Instructure
School & District Management Live Online Discussion Principal Overload: How to Manage Anxiety, Stress, and Tough Decisions
According to recent surveys, more than 40 percent of principals are considering leaving their jobs. With the pandemic, running a school building has become even more complicated, and principals' workloads continue to grow. f we

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Gunman in 2018 Parkland School Massacre Pleads Guilty
A jury will decide whether Nikolas Cruz will be executed for one of the nation’s deadliest school shootings.
3 min read
Annika Dworet and her husband, Mitch Dworet, wipe away tears as their son's name is read aloud during Marjory Stoneman Douglas High School shooter Nikolas Cruz's guilty plea on all 17 counts of premeditated murder and 17 counts of attempted murder in the 2018 shootings, at the Broward County Courthouse in Fort Lauderdale, Fla. on Wednesday, Oct. 20, 2021. The Dworet's son, Nicholas Dworet, 17, was killed in the massacre.
Annika Dworet and her husband, Mitch Dworet, wipe away tears as their son's name is read aloud during Marjory Stoneman Douglas High School shooter Nikolas Cruz's guilty plea on all 17 counts of premeditated murder and 17 counts of attempted murder in the 2018 shootings, at the Broward County Courthouse in Fort Lauderdale, Fla. on Wednesday, Oct. 20, 2021. The Dworet's son, Nicholas Dworet, 17, was killed in the massacre.
Amy Beth Bennett/South Florida Sun Sentinel via AP
Education Briefly Stated: October 20, 2021
Here's a look at some recent Education Week articles you may have missed.
8 min read
Education Gunman in Parkland School Massacre to Plead Guilty
The gunman who killed 14 students and three staff members at a Florida high school will plead guilty to their murders, his attorneys said.
4 min read
Parkland school shooter Nikolas Cruz is sworn in before pleading guilty, Friday, Oct. 15, 2021, at the Broward County Courthouse in Fort Lauderdale, Fla., on all four criminal counts stemming from his attack on a Broward County jail guard in November 2018, Cruz's lawyers said Friday that he plans to plead guilty to the 2018 massacre at a Parkland high school.
Parkland school shooter Nikolas Cruz is sworn in before pleading guilty, Friday, Oct. 15, 2021, at the Broward County Courthouse in Fort Lauderdale, Fla., on all four criminal counts stemming from his attack on a Broward County jail guard in November 2018, Cruz's lawyers said Friday that he plans to plead guilty to the 2018 massacre at a Parkland high school.
Amy Beth Bennett/South Florida Sun Sentinel via AP
Education California Makes Ethnic Studies a High School Requirement
California is among the first in the nation to require students to take a course in ethnic studies to get a diploma starting in 2029-30.
4 min read
FILE - In this Jan. 22, 2020, file photo, Democratic Assembly members, from left, James Ramos, Chris Holden Jose Medina, and Rudy Salas, Jr., right, huddle during an Assembly session in Sacramento, Calif. Medina's bill to make ethnic studies a high school requirement was signed into law by California Gov. Gavin Newsom on Friday, Oct. 8, 2021. (AP Photo/Rich Pedroncelli, File)