(from Inside Higher Ed) Boston's Newbury College announced Friday that it will close at the end of the spring 2019 semester, drawing support from state regulators and others for "making this difficult choice in an orderly way that helps maximize opportunities for students," said a spokeswoman for the Massachusetts attorney general. The announcement — after several strategic and branding shifts during the school's 66-year history — garnered respect from others as well. "If an institution really knows that it's not financially viable, it is ethical to give students, faculty and staff that information as soon as possible so they can make the best choices available," said Susan Resneck Pierce, a former college president. These reactions contrast with those in April when another Boston-area school, Mount Ida College, announced that it would be closing at the end of the semester, leaving faculty members and students with little time to plan their next moves.
Newbury's struggles included a drop in net assets of roughly $2.4 million for fiscal 2017, a working capital deficit of about $825,000 and negative cash flow from operations of $442,000.
The news coincides with rising concerns about the long-term viability of the business model of traditional colleges and universities. In Forbes last week, Michael Horn unpacked Clayton Christensen's much-repeated prediction that half of colleges and universities will go bankrupt in the next decade.
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