Performing arts college CPA Studios has officially gone into liquidation, citing financial challenges that made it unable to compete with its rivals and attract fee-paying students.
The college, in Romford, said its financial difficulties meant it had been unable to invest in marketing and recruitment, and had no option but to close.
As a result, 11 members of staff have been made redundant.
Insolvency firm CVR Global was drafted in to review CPA’s financial position at the beginning of August, when news of the school’s sudden closure was announced, leaving students with nowhere to study at short notice.
CVR Global’s Charles Turner and Bat Cham assessed its situation and explored restructuring options, but were officially appointed joint liquidators on September 4.
Turner said: “Despite the college’s ability to trade successfully for a long period, it began to experience a significant rise in costs because of increased overhead charges and larger financial aid awards, which made the business unviable in the long term.”
He added: “This in turn had a knock-on effect on the college’s market presence, with insufficient funds available to invest in marketing, recruitment and specialised fundraising which significantly impacted the college’s ability to compete with its rivals in terms of attracting fee-paying students.”
Turner said he had been working with CPA’s board to explore options to avoid closure but added that expected on-going losses combined with a lack of capital “meant this difficult decision had to be taken”.
Meanwhile, the Charity Commission said it was aware of the situation and was working with trustees to ensure the closure is carried out properly.
A spokeswoman said: “The commission is aware of the closure of CPA Studios . The charity reported financial difficulties to the commission under our serious reporting procedures. We understand that the trustees responded appropriately and are taking steps to ensure the charity is wound up properly.”
“We have received assurances that arrangements were being made with external bodies to ensure a smooth transition for students, and have instructed the trustees to keep us informed of any significant developments.”
Following a campaign organised by former staff members, it is understood that most students from CPA Studios have been found places at other schools.