SAN DIEGO, CA – On April 25, Frank Papatheofanis, president and founder of the University of Saint Katherine (USK) in San Marcos, disclosed that the private Orthodox Christian school is indefinitely ceasing operations and will file for bankruptcy. The San Diego Union-Tribune reported that Papatheofanis communicated to students, faculty, and staff via email, which was also shared on social media, explaining that the university is unable to meet its financial obligations due to a significant shortfall in operational funds.

He attributed the financial difficulties to several factors, including extraordinary inflation, unexpected increases in salaries, and substantial financial aid given to students, all of which have similarly impacted many small educational institutions nationwide, leading to their closures.

It was announced that the university would officially close on May 18. Papatheofanis, opting not to give an interview, instead issued a statement emphasizing that USK is a non-profit, Hispanic- and minority-serving institution. Despite offering one of the lowest tuition rates in California, the institution faced insurmountable financial pressures from unprecedented inflation and rising labor costs mandated by the state.

Further, on April 25, Papatheofanis mentioned that the Board of Trustees and he had thoroughly examined various alternatives to keep the university operational, but none were feasible. He confirmed the decision to file for bankruptcy while still looking for any possible opportunities to salvage the situation.

The closure announcement, made just days ahead of final exams, was unexpected and led to a wave of reactions on social media. The Athletics Department expressed sorrow over the ending of student-athlete careers at USK but noted that the beach volleyball team would continue competing in the NAIA National Invitational with hopes for a national title.

In the wake of the news, students and faculty were observed preparing to leave the campus, with many expressing shock and uncertainty about the future. Among them was senior Chloe Thompson, who was unsure about the possibility of her graduation ceremony proceeding as planned.

Evan Getz, chair of the Arts and Humanities department, shared his gratitude for having had the opportunity to teach at USK, praising the community but also acknowledging the need to seek new employment.

Previously, USK had ambitions to expand significantly by relocating to Chula Vista as part of a broader initiative to establish a multi-institutional campus. Despite plans for development, including student housing and educational facilities for around 1,000 full-time students, negotiations for a lease in the University and Innovation District of South County’s undeveloped park fell through without a specific cause, as stated by Michele Clock, Chula Vista’s spokesperson, last year.