The school blamed enrollment declines across almost all of its programs over the last several years for its collapse, having suffered four straight years of operating losses amid the loss of COVID-related grants and weaker investment returns.
After announcing in April it would close at the end of the spring 2026 semester, Anna Maria College in Paxton has filed for Chapter 11 bankruptcy.The Sisters of Saint Ann, Inc., doing business as Anna Maria College, filed for voluntary bankruptcy on Friday in the U.S. Bankruptcy Court For The District Of Massachusetts Central Division. The college’s filing shows its board of trustees voted to authorize the bankruptcy filing on May 8. The school blamed enrollment declines across almost all of its programs over the last several years for its collapse, having suffered four straight years of operating losses amid the loss of COVID-related grants and weaker investment returns. The filing estimates the school has 200 to 299 creditors, with $10 million to $50 million in liabilities and $10 million to $50 million in assets. Documents show Anna Maria’s cash and cash equivalents fell from $981,420 in fiscal 2023 to $133,499 as of June 2025, with the college having less than $55,000 in unrestricted cash at the time of the filing.Anna Maria announced its Chapter 11 filing in a statement posted to its website on Friday.“This step was taken by the Board of Trustees following consultation with outside legal counsel, independent accountants, and the college’s bondholder,” the college’s statement reads. “All compensation obligations to employees have been fully met. Ongoing work in support of students, including teach-out and transfer partnerships, will continue.”The statement said Anna Maria will offer no further public comment on the bankruptcy filing.Anna Maria’s bankruptcy intends to facilitate the winding down of the college’s operations and facilitate a sale of its campus. The school had an operating loss of $7.53 million in fiscal 2025, according to a declaration filed by Anna Maria College President Sean Ryan as part of the bankruptcy proceedings. Ryan became the president of Anna Maria in March 2025, replacing longtime leader Mary Lou Retelle. Anna Maria's total enrollment fell from 1,853 in fiscal 2021 to 1,520 in fiscal 2025, an 18% decline. Its net tuition and fee revenue fell 25.5% in that same time period, from about $19.2 million to about $14.3 million.
Bond-related debt
In 2017, Anna Maria had secured $24.5 million in tax-exempt bonds from MassDevelopment, with Providence-based Citizens Bank purchasing the bonds. The bonds went toward refinancing older debt and paying for capital improvements on campus, including construction of a new residence hall. The bond involved Anna Maria hitting certain performance goals, including holding at least $10 million in unrestricted cash and investments and enrolling at least 300 new full‑time freshmen each academic year.Citizens provided the college with waivers and modifications to the bond in 2023 and 2024, but Anna Maria defaulted prior to filing for bankruptcy, with about $17.73 million remaining on the bonds.Citizens’ bond-related lien covers most of the college’s assets, making it the largest secured creditor. Anna Maria is requesting the court to approve a $3-million loan from Citizens meant to assist the college with winding down. Citizens also agreed to allow Anna Maria to access $53,000 in cash collateral. Ryan wrote in his declaration the funds will go toward remaining operational costs, administrative expenses, and marketing the campus for sale, saying the benefits of the loan outweighed its costs. The loan would mature at the end of October, with Anna Maria intending to sell its property before that date.
Other creditors
Anna Maria’s largest unsecured creditors include the U.S. Department of Education, Maryland-based food service provider Sodexo Inc. and its affiliates, and Risepoint, a Delaware-based education technology company. The debt related to the Department of Education comes in the form of awards and grants totaling $1.57 million. Sodexo is owed $1.3 million, although Anna Maria listed the amount as disputed, with documents not providing further context on the dispute.Anna Maria’s filing shows it owes $134,415 to the Town of Paxton, including $98,053 to the Town’s police department. The college owes $4.28 million to its top 20 unsecured creditors.Ryan said in the declaration a 2025 appraisal showed the campus has an aggregate as‑is market value substantially in excess of the college’s secured debt. The campus is more than 260 acres and has a 2026 appraisal of over $40 million, according to Town of Paxton property records. Anna Maria relied on $5.3 million in anonymous donations, including a $1.5-million donation to cover employee wages and benefits, which enabled it to complete the spring semester and pay all terminated employees prior to filing for bankruptcy, according to Ryan’s declaration.
Winding down
In March, the New England Commission of Higher Education issued a public notice stating concern the college may fail to meet the standards required for continued accreditation. In an April report, the college’s independent auditor – Worcester-based Bollus Lynch – expressed substantial doubt regarding the college’s ability to continue operating. That same month, the Massachusetts Department of Higher Education issued a public notification saying it could not confirm Anna Maria had the resources to sustain operations through the academic year. These warnings triggered heightened oversight of federal aid, hurting enrollment and worsening projections, according to Ryan’s declaration.During its May meeting, the board of trustees voted to direct the college to cease operations, reduce the minimum number of board members from 15 to five, authorize a sale of assets and terminate its retirement plan, with all participant account balances becoming fully vested and nonforfeitable.Anna Maria has retained about 25 employees as part of its transition team.Sean Ryan, president of Anna Maria College IMAGE PHOTO I COURTESY OF ANNA MARIA COLLEGEIn his declaration, Ryan wrote student pathway agreements have been established with Worcester State University, Weston-based Regis College, Springfield College, Longmeadow-based Bay Path University, Chicopee-based Elms College, Fitchburg State University, and UMass Lowell.In addition to those agreements, Anna Maria is working to have Assumption University in Worcester take over its nursing program. Founded in 1946 as a women's college, Anna Maria became coeducational in 1973. The school was founded by the Sisters of Saint Anne and was originally based in Marlborough before moving to Paxton in 1951.John Monaghan, an attorney with the Boston office of Florida-based law firm Holland & Knight, is representing Anna Maria in its bankruptcy proceedings and serving as its restructuring counsel. The college has hired Foxborough-based law firm Verdolino & Lowey as its financial advisor.Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
