Labour MP Mary Kelly Foy has accused Chinese company Galaxy Global Education (GGE) of orchestrating a 'land grab' after it closed three historic private schools since April, including Durham High School last week. The closures have prompted a House of Commons debate and a warning from Education Minister Olivia Bailey that the company could face an investigation if it enters administration.
Historic Schools Closed
All three schools closed by GGE were over 100 years old: Durham High School (founded 1884), Ruthin School in North Wales (over 700 years old), and Malvern St James in Worcestershire (133 years old). The closures have left families and staff devastated, with protests held by the NASUWT union outside Durham High School.
MP's Allegations
Speaking in the Commons on Tuesday, Ms Foy said: 'This entire debacle bears the hallmarks of a land grab. In Durham, the prime real estate on which Farewell Hall sits is estimated to be worth around £10 million.' She accused GGE of 'starving the school of minimal resources' and setting benchmarks 'designed for failure', adding that promised investment to convert the school from girls-only to co-educational 'didn't materialise'.
Ms Foy also criticised GGE for giving no notice of closure to parents in Durham and Ruthin, unlike Malvern, calling it an attempt to 'hide from any further scrutiny'. She dismissed GGE's claims that the closures were due to the government's VAT on school fees as 'nonsense', citing a senior staff member's parting message: 'Whatever you read, this isn’t a VAT story, it isn’t a falling rolls or unstoppable decline story. The truth is deeper and more complex.'
Government Response
Education Minister Olivia Bailey expressed 'shock' at GGE's operations but noted that private schools are 'responsible for ensuring their long-term viability'. She stated that if the company enters administration, 'robust protocols' would follow, including 'considering the conduct of the company’s directors' and possible investigation by the Insolvency Service.
GGE's Defence
A GGE spokesperson categorically rejected 'any suggestion that the school was acquired for its land or that there has been any asset stripping'. They stated that Durham High School was owned by a separate legal entity, Durham Education Ltd, and that shareholders 'invested substantial additional funds' exceeding the value of the land to support the school's operation. The company blamed 'significant financial pressures', including declining pupil numbers, rising costs, and the VAT burden, for the closure.
