No Safety Net for Employees in Bryman College Shutdown

Career College Central Summary:

  • With the closure of Bryman College and sister school BioHealth College, programs to protect its more than 300 students sprang into action, helping them obtain tuition refunds and loan forgiveness.
  • But for the colleges’ 85 employees—who were laid off without payment of wages they were owed or severance—there’s no safety net. Former employees of the California campuses have told Bankruptcy Beat that no one received paychecks on Aug. 1, the payday following the July 25 shutdown, and that many July 16 paychecks bounced.
  • Left jobless and frustrated, the employees are navigating the bankruptcy system to recover their wages and are finding their odds of payment to be grim. A lawyer representing Bryman and BioHealth in their bankruptcy case declined to comment on the employees’ situation Tuesday.
  • The schools’ parent company, which filed for Chapter 11 bankruptcy in July and shut down days later, lists the employees as unsecured priority creditors (a group in bankruptcy cases that often receives only partial payment) owed $96,597.30, according to recently filed court documents. This doesn’t include the $121,590 Chief Executive Sam Shirazi says he’s owed.
  • The documents likely vastly underestimate the amount of employee claims, as the majority of the workers are listed as being owed nothing. No employees received a final paycheck, several former employees told Bankruptcy Beat.

Click through to read the full article.

THE WALL STREET JOURNAL

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