A federal bankruptcy court in West Virginia has set a hearing for next month on the possible sale of a defunct private university’s campus.
A court-appointed receiver filed a motion Wednesday to sell the land, furniture, equipment and equipment of the former Alderson-Broaddus University in Philippi to DACK Investments LLC for $4.9 million.
If competitive bids are submitted in writing by Jan. 26, the auction will be held on Jan. 31 in U.S. Bankruptcy Court in Clarksburg. If not, the court will hold a hearing on Jan. 31 to approve the sale to DACK, a real estate company in nearby Buckhannon.
WBOY-TV first reported on the impending sale.
Founded in 1932, Alderson Broaddus had been in financial trouble for several years.
The small Baptist university filed for Chapter 7 bankruptcy in August, a month after announcing plans to cease operations. This application allowed the university to liquidate its assets. The university estimated its total assets were between $1 million and $10 million, its debts were between $10 million and $50 million, and it owed money to between 100 and 199 creditors.
Alderson College’s governing board announced plans to disband on July 31 after the state’s governing board, which oversees four-year colleges, revoked the school’s degree-granting authority on Dec. 31. It was decided that 625 students from the university competed to get into other universities.
In August, Alderson Broadus shut down its website, encouraged employees to apply for unemployment insurance benefits, and announced that it had voluntarily declined accreditation from the Commission on Higher Education.