The Sage Institute, endorsed by the Steve “The Commando” Willis, has gone into Administration. Many would recognise the Institute’s name for their numerous advertisements on morning radio shows throughout Sydney.
The announcement of Administration has created an air of uncertainty, and not one as pleasant as butter and sage sauce. Centres have closed in both NSW and Queensland this week, leaving approximately 1600 students and 200 employees in the lurch. Many students had invested large sums of money and time into attaining certifications for prospective careers in the fitness, child care, aged care and massage therapy industries. Students are now being advised to pay outstanding fees before they can receive certification which allows them to transfer to other institutes to continue studying, following the announcer.
Students who enrolled in a Diploma of Early Childhood Education & Care were not advised of the impending collapse of the institute. Instead, they were able to sign up for “interest free loans” of up to $7,000 in addition to paying $500 upfront for textbooks and uniforms. Whether these students will receive reimbursements is unclear at this stage. Trainers and educators have also been affected, with some not paid in over 11 weeks.
What is Administration?
A company may be placed into Administration when it experiences financial difficulty. Directors can choose to do this voluntarily, or creditors will make arrangements for this to happen involuntarily.
Administration is carried out by an independent/qualified person who takes full control of the company. The aim is to try to work out the best way to save the company or its business. From here, the administrator will determine whether the company will:
- end Administration and return to the control of its directors,
- whether it will enter into a deed of company arrangement. This allows the company to pay all or part of its debts, or
- if it will be wound up and have a liquidator appointed.
Administrators for the Sage Institute, Ferrier Hodgson, have confirmed that “all employee entitlements will rank as priority unsecured claims” . Students have been advised to contact the Australian Council of Private Education and Training’s activations team on 1800 875 474.
If you have been affected by the Sage Institute or any other company’s Administration, please do not hesitate to contact our offices on 02 8917 8700 or fill out the enquiry box on and we will get back to you ASAP.