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School Shuts Down, Dozens Lose
Their Jobs
October 16, 2008
By Marshall Zelinger -
m.zelinger@krdo.com
CANON CITY - 33 more people in
Colorado are out of work. The Royal Gorge Academy in Canon City
abruptly shut down Thursday. The school's parent company in Utah,
Octwell, notified employees on Tuesday. 45 students were enrolled at
the school for at-risk teens. About one-third of the students were
sent by van to another private school in Louisiana. The rest are
most likely going back home.
"We're surprised and very
disappointed, but we understand the business decision," says Royal
Gorge Academy Director Jeff Kwallek. "We've had declining enrollment
over the past several months we think largely due to the economic
situation across over the country."
Tuition at Royal Gorge Academy was
just less than $3,000 a month. There were also deposits and
non-refundable fees. Many parents needed to borrow money to pay for
tuition.
"They simply were unable to get the
loans that they wanted to send their students here," says Kwallek.
The school's capacity was 180
students. In April 2008, 90 students enrolled. When it closed its
doors Thursday, there were just 45 students.
"We anticipated a back fill of
those students with new students and that just didn't happen this
summer," says Kwallek.
Octwell owns Red River Academy in
Lecompte, Louisiana. Some of the 45 students were sent there by van
Wednesday and Thursday. Many of the students were from out of state
and are returning home to California, Nevada, Arizona, New Mexico,
Texas and Florida.
"It's sad to see them go before
they've had a chance to attain some of the goals that we help them
set," says Kwallek.
According to the secretary of
state's office, Royal Gorge Academy missed a June deadline to
re-register as a business in Colorado.
Last year, Royal Gorge Academy's
director Randall Hinton was convicted of assault and false
imprisonment. It stemmed from an incident involving discipline of
some of the students.
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