St. Augustine’s University Faces Bankruptcy, Considers Selling Land to Survive

St. Augustine’s University in Raleigh is entering a critical financial chapter after filing for bankruptcy and stepping away from its fight to maintain accreditation. Leaders now say the 160-year-old historically Black university may need to sell parts of its campus to stay afloat.

At a recent bankruptcy hearing, attorneys laid out the severity of the school’s situation: St. Augustine’s owes between $50 million and $100 million to hundreds of creditors. The university is now focused on reorganizing its debts, stabilizing operations, and trying to preserve what remains of its academic mission.

Possible land sales on the table

One of the major options being discussed is selling off portions of university-owned property. Attorneys said the school is exploring whether it can keep the “core campus” intact while selling peripheral land or buildings that are not essential to operations.

Some parts of campus may be more complicated to sell because they are listed on the National Register of Historic Places, which could affect both value and legal process. School officials emphasized that any land sales are still in early planning stages and no final decisions have been made.

Extremely limited operations

The financial crisis has left the university operating at a minimal level. According to testimony in court, the school now employs fewer than five administrative staff members and about five faculty members. Security staffing has also been reduced, with only one officer on duty during the day and one at night.

The university generates only small amounts of income through rental properties—about $10,000 per month, including 26 apartments and a few additional properties. Officials said this is nowhere near enough to cover operating costs.

Leadership and governance changes

A new interim president, Verjanis Peoples, has taken over leadership duties with a salary of $125,000. The Board of Trustees currently includes 15 members, many of whom were appointed during the university’s recent financial crisis.

Court testimony also highlighted past leadership issues, including financial mismanagement concerns and rapid turnover in administration, which have contributed to the university’s current instability.

Financial lifeline from Self-Help

A major creditor, Self-Help Ventures Fund, has played a central role in keeping the university operational. It acquired and restructured high-interest debt, reduced interest rates, eliminated fees, and provided ongoing financial support.

The organization has also helped fund legal and crisis management support and is currently considering a new $2 million loan to keep the university functioning during bankruptcy proceedings.

Accreditation loss and future direction

The university has abandoned its legal battle to maintain accreditation, meaning it will lose accreditation on May 15. As a result, current students will need to transfer to other institutions, including nearby HBCUs such as Shaw University.

Looking ahead, St. Augustine’s plans to shift toward short-term certification and apprenticeship programs rather than traditional degree offerings. These programs would target working adults and rely on partnerships with public, private, and religious organizations.

What comes next

The university remains in active bankruptcy proceedings and is expected to return to court later this month as it continues to negotiate financing, staffing, and its long-term future.