A language school with a base in Brighton has gone bust, leaving students – adults and children – stranded and debts of tens of thousands of pounds owed to local firms and individuals.
EC English, which has premises at Dolphin House, in Manchester Street, ceased operating with immediate effect this week.
The Brighton branch of the international language school chain opened in August 2003, operated all year round and hosted more than 400 students in peak weeks.
One of about 30 suppliers in Brighton and Hove said that it was owed more than £15,000.
The global chain was founded in Malta in 1991 and was estimated to have about 40,000 students in 25 locations around the world.
In a formal statement, the parent company said: “EC English Language Centres (EC), the Malta-founded international education group, today announced that it resolved to commence formal insolvency, administration and / or winding-up processes.
“This follows challenging financial conditions and the failure to secure additional investment.
“Prior to the covid-19 pandemic, EC had grown from its Maltese roots into one of the world’s leading international English-language education groups.
“At its peak in 2019, the group operated across eight countries and welcomed approximately 45,000 to 50,000 students annually through its EC adult schools and Embassy-branded junior programmes.
“The group has faced challenging financial and market conditions in recent years which placed significant pressure on its financial position.
“Despite the efforts of the directors and management to stabilise the business and protect the interests of all stakeholders, including creditors, these conditions continued to affect the group’s performance.
“The directors took active steps throughout this period to safeguard the interests of all stakeholders, including creditors. The business was supported through additional funding from its shareholders and investors.
“The directors, working closely with professional advisers, explored every reasonable alternative to secure the future of the business, including discussions with a number of prospective investors and strategic parties. Despite these genuine efforts, no transaction was achieved.
“When the most recent prospective transaction did not proceed, the directors took immediate steps to commence formal processes.
“Against this background and having carefully considered all options available to them the directors of the relevant Maltese companies concluded that they had no reasonable alternative but to commence formal winding-up processes.
“This decision was taken with the interests of creditors and all stakeholders firmly in mind.
“Given the interconnected nature of EC’s international operations, this is expected to have consequential effects on other parts of the group, where the appropriate administration, insolvency or wind-down procedures will be determined in accordance with local laws and circumstances.
“EC’s immediate priority is to manage this process as responsibly and in as orderly a manner as circumstances permit, with particular attention to the welfare and safeguarding of students currently in its care, the fair treatment of creditors and the interests of employees and other stakeholders.
“The group is working with legal and restructuring advisers across its jurisdictions to determine the appropriate next steps.
“EC deeply regrets the impact that these developments will have on its students, their families, education agents, suppliers and other partners around the world.
“Above all, the directors wish to recognise EC’s employees. For more than three decades, thousands of people have contributed to building EC from a single school in Malta into an internationally recognised education organisation.
“EC’s teams have demonstrated extraordinary commitment to their students and to the organisation.”
EC executive chairman Andrew Mangion, who was present at the official opening of the Brighton branch 23 years ago, said: “EC has been much more than a business to those of us who have built it and worked within it.
“It has been a community of extraordinary people united by a belief in the power of education to bring people and cultures together.
“Our team worked incredibly hard to build and sustain this company. Our shareholders, employees, partners and advisers have made enormous efforts to give EC every possible opportunity to succeed.
“Together with our professional advisers, we explored every realistic avenue available to us to secure new investment and a sustainable future for the group.
“At every stage, we sought to act in the best interests of our students, employees, creditors and partners. It is therefore with profound sadness that we have reached this point.
“Our thoughts today are first and foremost with our students, our employees and the many agents and partners who have supported EC around the world.
“We are committed to working closely with the appointed insolvency professionals and relevant authorities to ensure that the wind-down is conducted fairly and transparently and that the interests of creditors and all stakeholders are properly protected.”
The company added: “Further information regarding individual schools, students, employees and other stakeholders will be communicated as the relevant processes in each jurisdiction are confirmed.”
