HBCU unfortunately files for bankruptcy amid finalcial struggles

North Carolina-based HBCU Saint Augustine’s University is taking a big step amid financial struggles, per a report by WRAL News. The university is filing for Chapter 11 bankruptcy, which will allow the institution to reorganize its debt and remain in operation. Per court documents obtained by WRAL, the university owes between $50 and $100 million to creditors, with the IRS being the largest creditor at $14.4 million owed. Other creditors include American Trust Company, the Department of Education, and other federal agencies.

Saint Augustine’s released a statement following their bankruptcy filing, obtained by WRAL.

“This structured, court-supervised process will enable SAU to organize its financial affairs in an orderly and transparent manner. The decision, made by the University’s Board of Trustees, reflects a deliberate and strategic step to advance the University’s long-term sustainability while addressing current financial realities,” the university said via a press release on Tuesday.

In February, Saint Augustine’s saw a promising update as it regained its accreditation and resumed normal operations for the spring 2026 semester. In February, Sophie Gibson, Chair of the university’s Board of Trustees, spoke about the steps that the institution was making towards stability.

“SAU has taken meaningful steps to strengthen governance, institutional leadership, and planning,” said Gibson in the February statement. “We are building a Board with the experience and discipline required for this moment. Our focus is on restoring stability, rebuilding trust, and positioning SAU for sustainable success. We welcome continued engagement from our students, faculty, staff, alumni, donors, faith partners, community leaders, institutional partners, and supporters of all kinds as we work together to secure a strong future for this historic institution.”

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