The San Francisco Art Institute (SFAI), renowned for its long legacy in the art education sphere, has officially filed for Chapter 7 bankruptcy as of April 19, following years of escalating debt and dwindling enrollment numbers.

Financial Challenges and Declining Enrollment

With a staggering $10 million in debt and merely 41 students left enrolled, the institute’s financial troubles have culminated in the decision to liquidate its assets, effectively marking the end of its 152-year history.

Failed Merger Attempts

The institution had explored various avenues for survival, including a potential merger with the University of San Francisco. However, this deal fell through last summer, signaling a continued decline in the school’s prospects.

Outstanding Debts

According to reports, SFAI’s creditors include major utility firms such as AT&T and PG&E, as well as the University of San Francisco, which is owed $6 million stemming from the failed merger discussions. The institute owes the Regents of the University of California approximately $450,000 in unpaid rent for its main campus and $750,000 for the abandoned Fort Mason campus—a costly $14 million expansion initiated in 2017.

Impact on Faculty and Students

The abrupt closure has left many faculty members in financial uncertainty, as severance payments are part of the institute’s creditor obligations. The impact of SFAI’s closure is felt deeply across the arts community, with many former students and faculty, including notable names like Dorothea Lange and Ansel Adams, contributing to the fabric of American art.

Reflections on a Legacy

“It was a good run for 152 years and it is such a tragedy that it is gone,” remarked John Marx, a former co-chair of the board. As the school’s last chapter comes to a close, Supervisor Aaron Peskin noted, “The legacy lives everywhere. All around this city and this country is the art that this institution produced and fostered.”

The Future of the Institute’s Assets

In a rather symbolic twist, the institute’s financial filing identified just $9.35 in its account with Silicon Valley Bank among its assets, highlighting the dire straits in which it finds itself.