International colleges collapse into administration

Australia’s beleaguered export education sector has been rocked by the collapse of another group of international colleges in Melbourne and Sydney.

Global Campus Management was placed in the hands of voluntary administrators Stephen Parbery and Craig Crosbie yesterday.

The company, which operators under the Meridian brand, runs four individual colleges offering secondary school courses and tertiary courses to more than 2,700 overseas students.

The four schools – Meridian International School, Meridian International Hotel School, International Design School and International College of Creative Arts – have a total of 13 campuses.

According to a statement from the administrators, the poor financial position of these colleges means the majority of these campuses have been closed immediately.

That has thrown the exam plans of hundreds of students sitting their Year 12 exams into chaos and the Victorian Government is scrambling to ensure these exams can continue.

The remaining students, who are likely to be owed thousands of dollars for fees that have been paid upfront, will hope to be transferred to other suitable colleges under the guarantee system operated by the Australian Council for Private Education and Training.

“The administrators are working in conjunction with Commonwealth and State authorities and will establish a hotline for student enquiries,” PPB said in a statement released this morning.

A creditors meeting will be called within the next eight days and held in Sydney.

The export education sector has been rocked by a number of school closures and company collapses in recent months, including the collapse of Sterling College and Melbourne International College in July.

In response, Federal Education Minister Julia Gillard announced tough new rules that will require every vocational education provider to re-register under new, tighter criteria by the end of 2010.