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Chinese owner accused of asset-stripping closes two private schools

The Times's profile
Original Story by The Times
July 2, 2026
Chinese owner accused of asset-stripping closes two private schools

Context:

Two private UK schools, Ruthin School and Durham High School, abrupty closed by Chinese owner Galaxy Global Education, following a prior shuttering of Malvern St James. The sudden decision left hundreds of pupils without places and staff without jobs, with families informed by email to leave by day’s end and no advance warning. The closures, amid allegations of asset-stripping by Galaxy Global, have sparked a government probe into foreign ownership regulation and heightened concerns about student protections. The incident signals potential risks for cross-border ownership of schools and prompts calls for stronger regulatory safeguards. Looking ahead, authorities and schools must address pupil transitions and explore defensive measures to prevent recurrence.

Dive Deeper:

  • Ruthin School in North Wales and Durham High School in the North East were closed on a Wednesday by their owner, Galaxy Global Education, months after Galaxy Global closed Malvern St James in Worcestershire.

  • The closures affect hundreds of pupils and staff; families and teachers received email notices with immediate shutdowns and a deadline for pupils to leave by the end of the day.

  • Galaxy Global Education is accused of asset-stripping, a tactic described as selling assets to pay debts or profit quickly, potentially weakening the schools.

  • The Department for Education has opened an investigation into the handling and implications of foreign ownership over UK schools amid the closures.

  • Reactions from parents and staff include shock and anger, with assurances that some pupils have secured places elsewhere while others are still seeking options.

  • The case raises questions about safeguarding and regulatory oversight for private schools owned by foreign entities and highlights the need for clearer protections for students and employees.

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