The college has about 1,200 students, many of whom are haredi, and offers eight degree programs. It has an exclusively haredi campus as well as other locations in the city and a staff of approximately 170, most of whom are reportedly teachers. It also has a $6.45 million debt and now way to meet it or pay the rent or it payroll.
Former Turo College Jerusalem Files For Bankruptcy Protection
Shmarya Rosenberg • FailedMessiah.com
Touro College’s former campus in Jerusalem, now known as the Lander Institute, has filed for bankruptcy protection, Ha’aretz reported.
On Thursday, Lander filed for a two-week order of protection from creditors and asked for the appointment of a trustee.
The college has about 1,200 students, many of whom are haredi, and offers eight degree programs. It has an exclusively haredi campus as well as other locations in the city and a staff of approximately 170, most of whom are reportedly teachers.
Lander reportedly says it is $6.45 million in debt.
Its nonprofit organization is now insolvent and was reportedly unable to meet its payroll for April or pay other obligations like rent.
Creditors reportedly include Israel Discount Bank, Mizrahi Tefahot Bank and Bank Otsar Hahayal.
Lander’s administration was replaced at the beginning of last year and austerity measures were put in place, but the college is nonetheless running a deficit of about $1.7 million per year.
Lander expected that another unnamed entity would make a major financial contribution to the college and resolve a significant portion of its debt, but that deal collapsed.
Touro College was founded in New York City several decades ago as a haredi-leaning alternative to Yeshiva University by Rabbi Bernard Lander. For many years it has served as a degree and credit generator for haredi yeshivas – especially haredi ba’al teshuva yeshivas like Aish HaTorah. Touro would accept many yeshiva credits unacceptable elsewhere as college credits, allow students to use them toward Touro degrees or transfer them elsewhere, effectively ‘washing’ the yeshiva credits like money launderers wash money.
But unlike money laundering, this arrangement was legal.
Touro also had (and still has) some legitimate degree programs.