Sylvan Learning franchise owner files for bankruptcy, closes multiple tutoring centers
Families scramble as Sylvan Learning locations close
FOX 9's Paul Blume has the latest on the closing of multiple Sylvan Learning locations after the franchise owner declared bankruptcy.
MINNEAPOLIS (FOX 9) - Paul Ripon, who owned and operated nine Sylvan Learning Centers, has filed for bankruptcy, shutting down office locations in Edina, Maple Grove, Roseville and Woodbury.
Sylvan Learning closures
What we know:
The move comes after the FOX 9 Investigators found the centers owed tens of thousands of dollars in unpaid rent, canceled tutoring sessions, lacked sufficient educators, and refused to refund tuition payments when services were not provided.
READ MORE: Several Sylvan Learning Centers shutting down as Minnesota school year begins
In an email Ripon sent to his employees that was obtained by the FOX 9 Investigators, he wrote that Sylvan Learning had revoked his tutoring licenses, forcing him to shut down operations across his franchise portfolio.
"There are no funds available at this moment," he stated.
Sylvan is a national company that has specialized in private tutoring in math, reading and college prep for students for more than 40 years. The company declined to comment on the latest developments despite multiple requests from the FOX 9 Investigators.
Several Sylvan Learning Centers shutting down as MN school year begins
Sylvan Learning is a national company that has specialized in private tutoring in math, reading and college prep for students for more than 40 years. FOX 9's Paul Blume has details on how several Sylvan franchises are shutting dowm as the school year begins.
Franchise owner files for bankruptcy
By the numbers:
In the bankruptcy filing reviewed by the FOX 9 Investigators, Ripon lists more than a dozen creditors to whom he owes more than $600,000 including the landlords of his nine Sylvan Learning Centers across the Twin Cities.
He reports owing the Sylvan Corporation nearly $205,000.
As for his customers, he told the court, he owes an estimated $100,000 to "many individuals" across all his centers.
Tutors, parents speak out
What they're saying:
The FOX 9 Investigators previously spoke to customers as well as tutors and former employees about their experiences since Ripon purchased the Sylvan Learning centers last year.
Parents who paid thousands of dollars for sessions said they could not even book tutors for their children or had sessions frequently canceled when a tutor was not available.
They complained that Ripon refused to refund their money after pre-paying or financing tuition packages through Sylvan Learning.
"I accept being disappointed for me," Jackie Friesen said at the time. "But I am not OK with my kids being disappointed. And that's who the victim is here. The victim is my daughter who needs the help."
Dig deeper:
Matt Neubert purchased an $8,000 tutoring package for his then 3rd grade daughter at the Maple Grove center.
He paid $2,000 in cash and financed the remaining $6,000 through a Sylvan Learning tuition account with Comenity Capital Bank.
He demanded a partial refund after the Maple Grove center abruptly shut down right before the start of the school year.
"I feel like the owner should really be ashamed of himself. Not only did he take from me, he took from my daughter," said Neubert. "I feel really bad for all the other families and children out there that are not getting what they need."
Sylvan silence
What's next:
The U.S. Bankruptcy Court will now sort out Ripon’s assets and debts. He did not respond to requests for comment from the FOX 9 Investigators.
There are other Sylvan franchise owners operating in neighboring communities, but it is unclear whether they are willing to honor customers who have made advanced payments for tutoring services through Ripon’s business.
Several of those impacted parents, including Neubert and Friesen, tell the FOX 9 Investigators, they have not heard anything from the Sylvan Learning corporation about tuition refunds or next steps following Ripon’s bankruptcy filing.