A historically Black university in Raleigh, North Carolina, affiliated with The Episcopal Church, has announced plans to file for bankruptcy while ending its efforts to retain accreditation.
Saint Augustine’s University said it will move forward with a voluntary Chapter 11 filing as part of a broader effort to stabilize its financial situation and restructure operations.
In a statement, the university explained that it “will initiate a voluntary Chapter 11 restructuring process” to “organize its financial affairs in an orderly and transparent manner.”
School officials said the decision was approved by the board of trustees as part of a long-term strategy to address ongoing financial challenges.
“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,” SAU said.
Despite the restructuring process, the university confirmed that it will continue operating, although it will end its legal fight over accreditation, which is expected to conclude on May 15.
Instead, SAU said it will shift its focus toward supporting students and developing alternative academic pathways.
The university stated it "will instead focus on supporting students through teach-out agreements, developing non-degree certificates and apprenticeship programs, and building a pathway toward reaccreditation,” it added.
SAU noted that the decision was made in coordination with its accrediting body, Southern Association of Colleges and Schools Commission on Colleges.
“The institution reached this conclusion in cooperation with its accreditor, [Southern Association of Colleges and Schools Commission on Colleges (SACSCOC)], to ensure impacted students were able to graduate from an accredited institution.”
Leadership changes were also announced alongside the restructuring plan, with interim leadership transitioning to a new appointee.
The university confirmed that Interim President Jennie Ward-Robinson has stepped down, and Verjanis A. Peoples has been named as the new interim president.
Founded in 1867 as the Normal School and Collegiate Institute, SAU began offering classes in January 1868 and has a long history as an educational institution.
Financial concerns have persisted for several years, prompting repeated actions by its accreditor to remove the university from membership.
Concerns about the university’s financial stability persisted, with Southern Association of Colleges and Schools Commission on Colleges voting to remove SAU from membership in December 2023, a decision upheld by an appeals committee in February 2024, and again voting in December 2024 to remove the university from its membership.
Although SAU appealed the decision, the appeal was denied in March, followed by a 90-day arbitration period during which the university remained open and graduating students continued to receive accredited degrees.
In an effort to regain its status, SAU later pursued legal action after an arbitration panel upheld the accreditor’s decision. The university announced last July that it had filed a lawsuit seeking to restore its accreditation following the arbitration ruling.
A temporary legal victory came in August 2025, when a federal court granted an injunction allowing the university to maintain accreditation as the fall semester began. Specifically, the U.S. District Court for the Northern District of Georgia issued a preliminary injunction that allowed SAU to continue operating as an accredited institution at that time.
