School firm accused of 'land grab' amid closures

A Chinese company has been accused of a land grab after closing three historic private schools.

Galaxy Global Education (GGE) announced the closure of Ruthin School in North Wales and Durham High School last week, and it was the final day of opening for Malvern St James School in Worcestershire.

Durham's Labour MP Mary Kelly Foy accused the company of a "land grab" in the Commons on Tuesday, alleging some of its sites were acquired to later sell for profit.

A GGE spokesperson said the allegation was "simply not true" and that any land previously owned by its schools now falls under the control of the joint administrators.

GGE managed four independent schools through separate companies, including Plymouth College, where Olympic gold medallist Tom Daley was educated.

Three of the four schools are to close, while Plymouth College is currently in the process of being sold to a new owner.

GGE said the schools had been operating against the backdrop of "unprecedented pressures" across the independent schools sector.

However, Foy called for an independent investigation into the company, saying: "In Durham, the prime real estate on which Farewell Hall sits is estimated to be worth around £10m.

"This brings me to the core question: What can the government do to stop predatory overseas companies from asset-stripping our educational institutions and treating our children's future as real estate speculation?"

GGE said: "We categorically refute any suggestion that the school was acquired for its land or that there has been any asset stripping."

Durham Education Limited, which was a firm established by GGE to own and operate Durham High School, went into administration on Monday.

GGE said its investment in Durham High School "significantly exceeded" the value of its land and property.

It added decisions regarding the future of the school site were now for the joint administrators "and GGE has no role in determining the future use or disposal of the site".

During the debate, education minister Olivia Bailey said if administrators found evidence of misconduct, and enforcement action was in the public interest, the Insolvency Service would "take appropriate action".

Founder of GGE Shangmei Gao said the company admired British independent education and wanted to invest in it, but underestimated the financial challenges.

"We invested far more than we ever expected, hoping to save these schools, but ultimately we were unable to do so," she said.

Gao said it had been "particularly painful" to hear suggestions its motives were anything other than "a genuine desire to support British independent education".

She said looking back they would have handled the communication differently and were "deeply sorry" for the distress caused.

The firm was unable to explain the situation while efforts to secure the future of the schools remained ongoing, she added.

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