SVCollege Collapses as Acquisition Fails, Leaving Students Facing Losses
SVCollege collapses as rescue talks fail, leaving hundreds of students who paid thousands of shekels facing lost tuition and preparing for legal action amid impending insolvency.
The attempt to rescue SVCollege through the sale of its operations failed at the last moment, and now students who paid thousands of shekels for professional training are trying to figure out if they will ever see their money again. The college has stopped providing services and is preparing for insolvency proceedings, while about one hundred of its students are already organizing for a legal battle.
According to the full response provided by SV. Protech Ltd., the operator of SVCollege, through attorney Eyal Zeller, an attempt was made to find an entity that would take over operations and allow studies to continue. In mid-September, a non-binding memorandum of understanding was signed with Tefen (I.L.) Israel Ltd. regarding the acquisition of the college's operations. However, the contacts did not lead to a binding agreement, and the deal fell through over the weekend.
Events unfolded rapidly from there. The college's activities were halted, and students were left with courses that were cut short or never started. For some, this is not just a professional disappointment, but significant amounts of money already paid.
The Financial Impact on Students
Or Shimon registered for a social media management course combined with artificial intelligence tools at a cost of ₪7,800. Studies were supposed to start after the holidays, but the opening date was postponed again and again. Meanwhile, standing order payments had already begun to be deducted.
"The money is gone. There is no one to talk to," Shimon said. "A college does not go bankrupt in a day, how did they take money from us in such a situation? I want my money back, they ruined me."
Behind the cessation of activities, according to the company, lies a financial deterioration that has persisted recently. SVCollege has operated since 2015 and trained thousands of students in technology and high-tech fields. The company claims that the ongoing war and changes in the high-tech market weighed on its operations, and that an attempt was made to cope with the situation through millions of shekels in loans.
Search for Alternatives and Insolvency
Now, alternatives are being sought for those left without a framework. According to the company, students were given the option to watch recorded courses indefinitely, and subject to the track and completion of requirements, they will be able to receive training certificates. At the same time, the possibility of reaching agreements with other colleges is being examined.
Another option being checked is going to court to appoint an official who could try to find a new buyer for the operations under legal proceedings. But for the students, the most urgent question is what will happen to the money they already paid, where the company does not provide a clear answer.
"As for the issue of refunds, the company is dealing with significant financial distress and is preparing for insolvency proceedings. In these circumstances, it cannot guarantee at this stage a refund to students or other creditors. The handling of financial claims and creditors' rights will be subject to legal proceedings and the decisions made within them."
