Accepting ‘market exit’ students has lasting impact – principal

Lessons still need to be learnt from one of the few “market exits” to have hit the UK sector in recent years before a much bigger institution finds itself in similar trouble, according to the head of the provider that was left to pick up the pieces.

Randall Whittaker, principal of Rose Bruford College, said he did not believe the long-term impact of taking on students from the Academy of Live and Recorded Arts (Alra) when it abruptly shut two years ago had been fully understood at the time, and now feels the process should be reviewed.

Agreeing to accommodate the 284 Alra students – the last of whom graduated earlier this year – and offer them an education as close to what had been promised as possible had taken a “significant” financial, academic and emotional toll on Rose Bruford’s staff and infrastructure, Professor Whittaker said.

With larger providers teetering close to the edge, he warned that he still did not see evidence that a sector-wide plan was in place to manage another – potentially much more disruptive – “disorderly market exit”.

Alra closed overnight in April 2022 after 40 years of offering drama courses to budding actors. Based across two sites in Wigan and London, it taught stars including Miranda Hart and Hannah Waddingham, but suffered from financial difficulties and closed days after taking students’ fees.

The English regulator, the Office for Students, quickly directed existing students to Rose Bruford to finish their studies, increasing the institution’s student numbers by a quarter.

Professor Whittaker, who was not in charge at the time, said he felt there had been an understandable focus from all parties on the immediate interests of the students, but little time spent considering the longer-term effects.

While on paper a straightforward swap, he said, there were significant differences in the culture of both institutions and he did not feel the Alra students had ever been properly assimilated.

As a fee-capped institution, Rose Bruford could charge only the maximum £9,250 yearly tuition fee to the newcomers, who had previously paid £13,400 for their course at Alra.

Under pressure not to rapidly change the course students had been promised, Professor Whittaker said Rose Bruford had had to stretch its resources in an already intensive environment, where students have high expectations over contact hours, numbers of placements and opportunities to perform.

With Alra going through the insolvency process, Rose Bruford did not inherit any of its assets and instead had to rent and kit out two new sites to cater for the students.

After taking on one additional cohort in Wigan, Professor Whittaker recently announced that this campus would close when these students graduated, blaming heavy losses. 

He said he recognised that all parties were in “uncharted territories” given the lack of other market exits to test the systems in place, but he felt there was an “absence of a formal mechanism to support the institution that takes the students”.

With speculation mounting that other providers will be asked to take on additional students amid financial threats to a number of institutions, Professor Whittaker said other leaders should ensure all the implications were thought through before stepping in.

“Knowing all I know now, I’d certainly make sure the resourcing is in place,” he said, when asked if he would go through the process again. “I wouldn’t even tolerate a discussion without understanding what resource would be available. If there was no resource, I’m afraid I’d be out.”

tom.williams@timeshighereducation.com