German Business School Files for Bankruptcy: MBA News

GISMA, a business school in Germany, has filed for bankruptcy at the district court of Hannover, with a reported €1.2m debt.

 

According to the blog MBA Channel, the business school suffered from both a lack of students, and cuts to government funding the school previously received.

GISMA was partnered with US based business school Krannert School of Management at Purdue University, who awarded GISMA's Masters programs, including a full- and part-time MBA in Germany. Alongside Krannert, local university Leibniz University of Hannover (LUH) awarded a second degree to graduating GISMA students.

 

Krannert has already commented on the sad demise of GISMA, pointing out that all students, including those studying their MBA in Germany through GISMA will be supported by the school, and alumni would be treated as Krannert's own alumni.

 

"Although we still haven’t received an official communication from GISMA itself about this situation, we are aware that it has sent an email to the public to announce it has come to this situation because of financial difficulties," said Dean Chris Earley, Krannert School of Management at Purdue University. "While this is disappointing news, it isn’t altogether a surprise, as GISMA has faced an increasingly challenging financial environment over the past several years."

 

The German local government has also previously commented that students would not be left stranded.