College Of New Rochelle Files For Bankruptcy

NEW ROCHELLE, NY — The College of New Rochelle officially filed for bankruptcy Friday, and the main campus will be sold via an auction. The college, which closed its doors Aug. 10 after 115 years, filed for Chapter 11 in the U.S. Bankruptcy Court in the Southern District of New York.

According to a spokesperson, Mercy College will lease the campus and utilize the facilities for educational activities through 2020.

A&G Realty Partners and B6 Real Estate Advisors, who were retained by CNT as real estate advisors, announced that the deadline to submit qualifying bids to participate in the bankruptcy auction is anticipated to be in early November.

Final bidding procedures and deadlines will be announced once approved by the court.

Mark Podgainy of Getzler Henrich & Associates, the interim chief restructuring officer for the college, said the bankruptcy filing is the final chapter for the institution.

"Over the course of the last 115 years, CNR has provided more than 87,000 students — women and men, both traditional age and adult learners — with the opportunity to better their lives through education," he said.

"We are pleased to have two well-respected and experienced firms in A&G Realty and B6 Real Estate Advisors to oversee the sale of the campus as it transitions to its next chapter," Podgainy said.

Marlene Tutera, chairwoman of the college's board of trustees, said that, while the bankruptcy was anticipated, it was a sad moment for all who have known, loved and been well served by the College of New Rochelle.

"The Board of Trustees is grateful for the tremendous efforts made by so many individuals who worked tirelessly in the attempt to save the college, and who then focused on assuring that our students were provided clear pathways to continuing and completing their college educations with Mercy College and other fine institutions," she said.

"We are particularly pleased that Mercy College students are utilizing the campus and are hopeful that the educational mission of the property can be continued long-term," Tutera said.

The College of New Rochelle found itself in a difficult financial situation in October 2016 and was, at times, days away from shutting its doors.

Then-President Judith Huntington resigned, and "unmet financial obligations" were uncovered and presented to the trustees.

About $20 million in payroll taxes had not been paid for eight quarters, beginning in 2014.

Mercy College reached an agreement with CNR to give its students a way to continue their educations.

The New Rochelle campus has 20 buildings, encompassing more than 425,000 square feet, and is built around a historic 19th century castle. There is also a modern recreational and educational complex, including an NCAA competition-sized swimming pool and basketball court.

Computer and photography labs, a television production studio and a 200,000-volume library are among the other features of the college.

The New Rochelle campus is sited on land former owned by hotelier Simeon Leland who built the castle as his summer home.

It is located in the Residence Park neighborhood of New Rochelle, within walking distance to the downtown and Metro-North train station and the Long Island Sound.

For additional information on the sale including inspection dates, please visit www.CNRCampus.com.

EDITOR'S NOTE: This article was updated to include a statement from Marlene Tutera, chairwoman of the college's board of trustees.

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