COEUR D'ALENE, Idaho — Three schools for troubled youths in northern Idaho are among those that have closed after their Austin, Texas-based owner filed for Chapter 7 liquidation in a Delaware bankruptcy court.
The filing Friday from The Brown Schools Inc., which has been targeted by state regulators in Texas after the 2002 death of a 17-year-old student at one of its schools in that state, lists assets of less than $10 million and debt between $10 million and $50 million.
Brown Schools operates 11 boarding schools and educational facilities for troubled children in Texas, Idaho, California, Florida and Vermont, according to its Web site.
Employees of CEDU Educational Services' three schools in Boundary County in Idaho filled out unemployment forms in droves Monday while a straggling handful of students packed their things to leave Idaho.
Emotions over the schools' sudden closure ranged from resignation to "beyond angry" in the unemployment queues.
"This is a relationship-based program, and they closed this like it was a factory," said Boulder Creek Academy counselor Silas Thompson. He and many other employees volunteered to stay around the clock at the school over the weekend to safeguard students until they could be turned over to their parents.
About 300 people in north Idaho are out of work, the Spokesman-Review reported, as students in CEDU's schools across the country were abruptly sent home.
School employees said they haven't been paid for three weeks, and they have no guarantees they'll get their back wages.
With the bankruptcy filing, they take a place in line with other creditors.
"This is devastating to our community," said fired staff member Norm Aldridge. He also worries about the impact on the students, many of whom are emotionally fragile. Some students "went ballistic" Friday when they learned they had to leave, he said.
The 17-year-old, Chase Moody of Richardson, was enrolled in a Brown Schools wilderness program in Texas when he died in 2002. He was restrained by at least three camp staff members after what the company described as a violent outburst.
Regulators alleged that an improper restraint was used at the Mason County program, but a grand jury later concluded that no criminal charges were warranted.
Brown Schools filed for liquidation along with 24 affiliates.
The bankruptcy filing includes 63 pages of creditors.
A listing of the 40 largest creditors includes a $1.5 million arbitration settlement, and $1.2 million for other legal settlements and fees.
The filing doesn't say who currently owns the Brown Schools.
Until recently, Menlo Park, Calif., investment firm McCown, De Leeuw & Co. owned Brown Schools and its unit, CEDU School Inc.
In Idaho, parents worried they won't be refunded for tuition.
As an enticement to pay months in advance, they had been offered a 7.5 percent discount on the $5,950 monthly tuition.
April Moore of Fairbanks, Alaska, recently cut a check for $74,000 to pay for the rest of her son's schooling.
She was in tears Monday, fearing she'd lost it all.
"My husband just died, and that's the only reason I have it," she said. "Apparently there are other parents who are trying to get their tuition back and can't."