NewSchool of Architecture and Design, the last remaining US college under Ambow Education’s umbrella, is facing significant legal challenges that could threaten its survival. Enrollment has plummeted to just 280 students, and the US Department of Education has placed the institution under Heightened Cash Monitoring (HCM2) for administrative issues.
Adding to its woes, NewSchool is currently embroiled in two major lawsuits over unpaid rent and contract breaches. The first lawsuit, filed on July 15, 2024, by Art Block Investors, LLC, seeks $2.26 million in unpaid rent and common area maintenance (CAM) fees. Following trial, the San Diego Superior Court issued a Proposed Statement of Decision granting possession of the premises to the plaintiffs and awarding damages, with attorney’s fees and costs (estimated at $80,000–$100,000) to be determined. NewSchool has objected to the decision, but a final judgment is expected within 30 days, followed by a motion for fees.
The second lawsuit, filed on September 6, 2024, also by Art Block Investors, LLC, alleges breach of contract and guaranty against both NewSchool and Ambow Education Holdings Ltd., seeking $4.47 million. This claim may be offset by amounts recovered from the first lawsuit. NewSchool has responded to the complaint, but no pretrial or trial dates have been set.
The outcomes of these lawsuits could have a severe financial impact on both NewSchool and Ambow Education. If the courts rule unfavorably, the college could face eviction and substantial financial liabilities, further jeopardizing its viability. The continued litigation also diverts management’s attention and resources, potentially harming the institution’s already fragile reputation.
As of April 2025, the situation remains unresolved, leaving NewSchool’s future—and that of its parent company—hanging in the balance.
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