School company accused of ‘land grab’ could be investigated, minister suggests

George Thompson, Press Association Political Staff

A Chinese company accused of a “land grab” after closing three historic private schools including one in north Wales could face investigation if it goes into administration, a minister has said.

Education minister Olivia Bailey said private schools are “responsible for ensuring their long-term viability” and “free to make their own business decisions”, but she was “shocked” at Galaxy Global Education’s (GGE) behaviour.

The company announced the closure of the more than 700-year-old Ruthin School in north Wales and 142-year-old Durham High School, in Co Durham, last week.

In April, GGE also revealed the 133-year-old Malvern St James in Worcestershire would shut.

Labour MP Mary Kelly Foy raised the sudden closure of Durham High School in the Commons on Tuesday, accusing the company of a “land grab”.

She said there was a “clear pattern across the country”, with the company having shut the three schools.

However, GGE “categorically reject any suggestion that the school was acquired for its land or that there has been any asset stripping”.

City of Durham MP Ms Foy told the Commons: “This entire debacle bears the hallmarks of a land grab

“In Durham, the prime real estate on which Farewell Hall sits is estimated to be worth around £10 million, and this brings me to the core question: What can the Government do to stop predatory overseas companies from asset-stripping our educational institutions and treating our children’s future as real estate speculation?”

GGE took over the school in 2024 and changed it from a girls-only facility to coeducational in 2025.

Ms Foy said promised investment to make it coeducational “didn’t materialise”.

She accused the company of having “starved the school of minimal resources” and setting benchmarks “designed for failure”.

While Ms Foy said parents were warned ahead of the Malvern school closure, the company “attempted to hide from any further scrutiny” by giving no notice in Ruthin and Durham.

She also claimed GGE’s previous suggestions that the schools were facing difficulty due to the Government’s introduction of VAT on independent school fees was “nonsense”.

Ms Foy said: “As a senior staff member said in their parting message, ‘whatever you read, this isn’t a VAT story, it isn’t a falling rolls or unstoppable decline story. The truth is deeper and more complex.’

“It seems clear that there was never any genuine effort by GGE to make this school a success.”

Ms Bailey said private schools are “free to make their own business decisions” but expressed shock at how GGE has operated.

She said: “Whilst we understand that the owner is not currently in administration, there are robust protocols that will be followed if an administrator does end up being appointed.

“This process would include considering the conduct of the company’s directors and an assessment of whether further review or investigation is warranted.

“Where evidence of misconduct is identified and enforcement action is in the public interest, the Insolvency Service will, of course, take appropriate action.”

The company also owns Plymouth College, which was once attended by Olympic diver Tom Daley.

In a statement, a GGE spokesperson said: “We fully understand why there are strong feelings following the closure of Durham High School.

“This has been an immensely difficult time for pupils, parents, staff and the wider community, and we are deeply sorry that the school reached this point.

“However, we categorically reject any suggestion that the school was acquired for its land or that there has been any asset stripping.

“Durham High School was owned by Durham Education Ltd, a separate legal entity from Galaxy Global Education.

“The shareholders acquired the school with the intention of securing its long-term future as an independent school and subsequently invested substantial additional funds to support its continued operation.

“Those investments significantly exceeded the value of the school’s land and property assets and enabled the school to continue operating while every realistic option to secure its future was explored.

“Ultimately, despite those efforts, it was not possible to establish a financially sustainable future for the school.”

The company said Durham High School, like other independent schools, had faced “significant financial pressures”, including declining pupil numbers, rising employment and operating costs and the additional financial burden of VAT.

The spokesperson added that following the appointment of joint administrators, decisions regarding the future of the school site are now for them, and GGE has “no role in determining the future use or disposal of the site”.