The collapse of three long-established UK private schools linked to Galaxy Global Education has triggered a political row over overseas ownership, school finances and the future of valuable education sites. The Chinese-owned group has denied claims that the closures amount to a “land grab,” insisting the schools were not bought for their land and that administrators now control key decisions over affected properties.
The dispute has grown after Durham High School, Ruthin School in North Wales and Malvern St James School in Worcestershire all closed or moved into closure processes. A fourth school connected to the group, Plymouth College, is not closing and is being sold to a new owner.
The issue reached Parliament after Durham Labour MP Mary Kelly Foy called for an independent investigation into Galaxy Global Education, also known as GGE. She questioned whether historic schools with valuable sites were being treated as property opportunities rather than protected educational institutions.
Why the closures have caused concern
The schools involved are not short-lived institutions. Ruthin School traces its history back to 1284, Durham High School was founded in 1884, and Malvern St James has long been part of the education landscape in Worcestershire. Their sudden decline has left parents searching for new places, staff uncertain about pay and redundancy, and local communities worried about what will happen to landmark campuses.
GGE managed four independent schools through separate companies. Three are closing or have closed, while Plymouth College, known as the former school of Olympic gold medallist Tom Daley, is in the process of being sold. That pattern has sharpened scrutiny because several major school decisions have happened under the same ownership structure within a short period.
In Durham, Foy focused on the Farewell Hall site, saying the prime real estate could be worth around £10 million. She asked ministers what could be done to stop what she described as “predatory overseas companies” from asset-stripping educational institutions and treating children’s futures as real estate speculation.
Galaxy Global Education rejected that claim. The company said it “categorically” denied any suggestion that Durham High School was acquired for its land or that asset stripping had taken place. It also said its investment in Durham High School significantly exceeded the value of the land and property.
Durham Education Limited, the company established by GGE to own and operate Durham High School, entered administration on Monday. Once a company enters administration, control over major decisions passes to appointed administrators. GGE said it no longer has a role in deciding the future use or sale of the site.
What administration means for families and staff
Administration is a formal insolvency process, not a finding of wrongdoing. It usually means a business cannot continue meeting its financial obligations and independent administrators are appointed to protect creditors’ interests, examine the company’s position and decide what can be rescued or sold.
For a school, however, the human impact is far wider than a normal business failure. Pupils may need to change schools quickly. Parents may have paid fees or deposits. Teachers and support staff may face uncertainty over salaries, notice periods and redundancy arrangements. Nearby schools may also come under pressure as families look for alternative places before September.
Education minister Olivia Bailey told Parliament that independent schools are responsible for their own finances, but she said enforcement routes exist if administrators uncover evidence of misconduct. Official information on how director conduct and insolvency matters can be reviewed is available through the UK Insolvency Service.
The government response matters because the case sits at the meeting point of private education, corporate ownership and public concern. Independent schools are private businesses, but they educate children, employ local staff and often occupy important community sites. When they fail suddenly, the effects are felt beyond shareholders or creditors.
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GGE has argued that the schools were operating under severe pressure across the independent education sector. Many private schools are facing rising employment costs, higher energy and maintenance bills, changing pupil demand and the added financial pressure from VAT on private school fees. Those pressures have forced some schools to merge, restructure or close.
But critics say the sector-wide explanation does not fully answer why three historic schools connected to the same group have shut or moved toward closure. That is why calls for scrutiny are focused not only on finances, but also on ownership decisions, investment promises and the future of school property.
The latest controversy also highlights how school disruption can quickly become a wider concern for families, whether caused by financial distress, sudden closure decisions or operational pressures. For broader context on how UK families respond when education plans are interrupted, see this guide on recent school closures across the UK during extreme weather.
The next stage is likely to depend on what administrators find and whether any buyer or rescue option emerges for remaining assets. Plymouth College’s sale may offer one route for continuity, but for Durham High School, Ruthin School and Malvern St James, the immediate priority for families is practical: securing new school places and clarity over refunds, staffing and records.
The controversy has turned a set of private school closures into a broader debate about who should own historic education institutions, how much transparency families deserve, and whether current safeguards are strong enough when school businesses with valuable property assets fail.
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