Group Claims Rider Deceived Public On Choir College Sale

LAWRENCEVILLE, NJ — A group in opposition to Rider University’s sale of the Westminster Choir College to Kaiwen Education claim the details of the agreement they recently obtained a copy of contradicts public statements by the university that the college wouldn’t be closed once the sale goes through.

Last year, Rider announced a Purchase and Sale Agreement (PSA) for the transfer of the college, including the Westminster Conservatory and Westminster Continuing Education. The sale was worth $40 million.

At the time, Rider said Kaiwen committed to operating Westminster at the current Princeton campus for no less than 10 years. Read more here: Rider Agrees To Sell Westminster Choir College

The agreement, obtained by Patch on Tuesday, shows that Kaiwen does agree to operated the Westminster Choir College at the Princeton campus for no less than 10 years from the closing date, and that the current programs offered at the school will be maintained for no less than five years.

However, the agreement also stipulates that Kaiwen may decide to discontinue those programs or close the college altogether if it determines in good faith that keeping the college open would “be substantially impracticable, economically infeasible or would substantially adversely affect WCC, its business, operations” and or Kaiwen.

“Given such broad, unlimited terms, Rider is allowing the Chinese buyer to close the school for virtually any reason or under any pretext,” said Constance Fee, President of the Westminster Foundation, a group of faculty and alumni opposed to the sale.

Westminster Foundation Attorney Bruce Afran said the agreement was sealed since it was publicly announced, and the fact that it had to be obtained via Open Public Records Act (OPRA) request shows the “real purpose of the contract.”

“If they decide to close the school, they would still hold the rights to the property,” Afran said. “They could re-purpose it as a commercial entity or a housing development.”

“The ability to modify, change, or discontinue academic offerings and programs because they are deemed substantially impracticable, economically infeasible or would substantially adversely affect WCC or Rider is the same right under which Rider has operated Westminster under the terms of the Merger Agreement entered into between Rider and Westminster in 1991,” Rider University said in a statement. “It is irresponsible to suggest that Rider entered into an agreement that allows the buyer to close Westminster at any time.”

Afran said the agreement is unprecedented because it is the first time an American institution of higher education has sold a college to an overseas entity. He said the Attorney General’s Office would weigh in with an opinion later this week, but the Westminster Foundation’s lawsuit against Rider will continue no matter what position the Attorney General takes.

Opponents of the sale have questioned Kaiwen's qualifications for running the college. The Chinese firm has no experience operating institutions of higher education, and has only been operating schools since 2016. In its announcement, Kaiwen stated that it is purchasing the college to increase its own profitability.

In fact, it was previously reported that the sale of the college was initially postponed while Kaiwen became accredited and licensed to operate the college.

In addition to the $40 million price tag, Kaiwen said it will invest an additional $16 million in the college over a five-year period beginning on the closing date for working capital and capital expenditures.

See related:
Rider Could Lose Millions On Westminster Sale, Report Says
Union Challenges Layoffs After Sale Of Westminster Choir College