Croft School Faces $13M Debt; Board Informs Parents
The Croft School, a private institution known for its educational quality, is currently facing a staggering debt of $13 million. The board of managers has informed families that they must urgently raise $5 million to ensure the school can continue operating and meet payroll obligations for the remainder of the academic year.
Parents’ Reactions to Croft’s Financial Crisis
The news has left many parents shocked and concerned about the future of the school. Matt Donohue, a parent of a 6-year-old student, emphasized the need to prioritize teacher payments and the continuity of school programs. Another parent, Rebecca Ullman, expressed worry about the staff’s well-being, highlighting their dedication and the importance of job security for them.
Management’s Efforts and Statements
In response to the crisis, the board reached out to families during spring break, assuring them that educational programs and staff would remain unchanged. The board expressed its commitment to resolving these financial challenges and emphasized that the well-being of Croft’s student body is a top priority.
Background on Croft School
Founded in 2017, the Croft School operates campuses in Providence, Jamaica Plain, and the South End of Massachusetts. The school previously aimed to expand its facilities, including plans for a fourth campus in Cambridge, but those plans have been halted.
Financial Irregularities and Accountability
Issues related to financial mismanagement have been brought to light. The school’s leader, Scott Given, who has strong educational credentials, reportedly informed a board member about significant misrepresentations in the school’s finances on March 6. This included maintaining two sets of financial records and discrepancies in revenue and expenses.
- Approximately $2 million borrowed from high-interest financing sources.
- Debt not disclosed to the board or reflected in official records.
- Cash reserves that have been significantly affected due to these financial issues.
Next Steps for Croft School
Despite the difficulties, Croft School remains determined to navigate through its financial troubles. The board is currently working on providing a full accounting of the school’s financial situation and is exploring options for restructuring. They have also received a $400,000 capital contribution to help stabilize their immediate cash flow.
Future Communication
The board plans to keep families informed about the situation, with updates expected to follow. For many parents, the focus remains on preserving the community and the quality education their children receive at Croft School.
