CEDU Properties Sold

CEDU's parent,  Brown Schools, declared bankruptcy in March, stranding kids over Easter weekend.

Brown Schools Bankruptcy Trustee George Miller held the auction in Philadelphia on August 11, 2005

• Chabad of Los Angeles  purchased the Running Springs, California campus for $4.3 million, according to the Lake Arrowhead Mountain News
• Universal Health Services purchased the majority of Brown's Northwest properties for $10 million, according to the Bonner County Daily Bee, or $13.5 million, according to the New York Times.

The properties and programs included in the bid are the former Ascent Therapeutic Adventure Program, Boulder Creek Academy, Rocky Mountain Academy and Northwest Academy.

Milestones Transitional Program was not included in the bid because it's tied up in litigation.

• The King George School (the only program that did not shut down because of the bankruptcy) in Vermont was also in the auction. Results of the auction haven't been published yet that I can find.  A group of parents is hoping to keep the school going.  The minimum bid was set at $3.5 million.

I wonder if any of the parents who pre-paid tuition will get their money back.  I wonder if the CEDU staff, who were owed three weeks' pay, will get any money.

On August 17 2005,  Louise Story published an article in the New York Times entitled "A Business Built on the Troubles of Teenagers" in which she wrote:

Universal Health Services, the hospital management company, acquired 12 properties from Charter Behavioral Health Systems for $105 million in 2000. That acquisition included the Provo Canyon School in Utah, which has been around since the 1970's as a help center for teens.

The company is set to take over several therapeutic schools that were run by CEDU Education, the earliest large company in therapeutic teenage help and a branch of Brown Schools, now bankrupt. Brown, which was based in North Palm Beach, Fla., went bankrupt in March largely because of lingering legal costs from lawsuits filed by several former students, said a spokesman for McCown De Leeuw, the private equity firm that owned Brown. Universal Health's bid of $13.35 million for the properties has been accepted by the bankruptcy judge, and the sale is expected to close at the end of the month, said George L. Miller, a partner at Miller Coffey Tate in Philadelphia and the bankruptcy trustee for Brown.

CEDU Posts

• Former CEDU Schools Reborn January 5 2007
• Update on CEDU Schools October 28 2005
• CEDU Properties Sold August 18 2005
• The Business of Troubled Teens August 18 2005
•  CEDU Closing: Buildings and Contents to be Sold May 8 2005
• CEDU Closing: On Edison Schools April 30 2005
• CEDU Closing: Pete Talbott's Resume April 27 2005
• CEDU Closing: McCown DeLeeuw Sued ByEmployees April 14 2005
• CEDU Closing: George Locker's Criticism of the CEDU Enterprise April 14 2005
• CEDU Closing: 1990 Snapshot of McCown DeLeeuw April 12 2005
• CEDU Closing: A Timeline of the CEDU Enterprise April 2005
• CEDU Closing: Letter from a Former Faculty Member April 2005
• CEDU Closing: Parents of CEDU Students Helping Economically Distressed Faculty April 7 2001
• CEDU Closing: Economic Impact on CEDU Employees Devastating April 7 2005
• CEDU Closing: 310 Employees Stiffed on Wages April  6 2005
• CEDU Closing: Who is To Blame? April 6 2005
• CEDU Closing: Running Springs Area Also Suffers Financial Impact April 6 2005
• CEDU Closing: An Alumnus Pleads, "Save CEDU!" April 4 2005
• CEDU Closing:  A Parent's Response to CEDU's Closing April 3 2005
• CEDU Closing: Bankruptcy Trustee Slams Door Shut, Then Open April 3 2005
• CEDU Closing: Parents Out Prepaid Tuition, Employees Lose Retirement. McCown Deleeuw Still Solvent April 3 2005
• CEDU Closing: King George Stays Open as Head Thinks on Feet April 3 2005
• CEDU Closing Shocks Industry Reporter April 3 2005
• CEDU Closing: Parent Company, Brown, Negotiating in Bad Faith?  April 1 2005
• CEDU Closing: More Details March 29 2005
• CEDU Closing: Brown Schools, CEDU's Parent, Files for Bankruptcy March 29 2005
• CEDU Closing: Margurite Sallee, The Brown Schools, and McCown DeLeeuw March 27 2005
• CEDU Closing: All CEDU Schools Closing Immediately March 25 2005
• CEDU Closing: Rocky Mountain Academy Folds Abruptly February 12 2005

Related Posts:

• Debunking "Tough Love" Programs April 11 2006
• Advice for Parents Seeking a Therapeutic Program for Their Children January 21, 2006
• Why The "Troubled Teen" Industry is Booming January 2, 2006
• The Road To Whatever August 25 2005
• Nonpublic School Governance April 23 2005
• Why Parents Seek and Pay for Therapeutic Boarding Schools April 14 2005
• NYT Article on the Therapeutic School Industry April 13 2005
• Therapeutic Schools: What Happens to Poor Kids April 10 2005
• Thinking of Sending Your Kid to A "Tough Love" Program?  March 30 2005

Questions Parents Should Consider Before Placing A Child

• NonPublic Schools: Part I--Overview
• NonPublic Schools--Part II Evaluating Mission, Values, & Goodness of Fit for Your Child
• NonPublic Schools--Part III Faculty and Staff Qualifications
• NonPublic Schools--Part IV: Evaluating Academic Program
• NonPublic Schools:Part V--On Accreditation
• NonPublic Schools:Part VI--More Detail on Financial Issues: IRS Status