Bankruptcy in 2015... Successive Acquisitions by Chinese Businessmen
Only 50 Students Remain... Over 10 Billion KRW in Debt
Foreign media have reported that there is growing attention on whether a Chinese businessman will revive the New York Military Academy, the alma mater of U.S. President Donald Trump, which is struggling with severe financial difficulties due to massive debt.
On June 4 (local time), The Wall Street Journal (WSJ) reported that Allen Lu, a Chinese education entrepreneur, recently acquired the New York Military Academy.
According to WSJ, the New York Military Academy was acquired in 2015 by Vincent Tianquan Mo, a Chinese real estate tycoon. However, due to financial difficulties and aging facilities, the school had accumulated about $7.8 million (10.6 billion KRW) in debt as of 2023.
This prestigious private boarding school, located in Cornwall, New York, was founded in 1889. In the 1960s, the school thrived with more than 500 students enrolled, but it later faced a crisis as the popularity of military-style education declined.
In 2015, the school eventually filed for bankruptcy due to management difficulties and was forced to close its doors. Mo then purchased the school for $15.8 million (21.4 billion KRW), but was hit hard by the COVID-19 pandemic and ended up with significant debt. Currently, the school remains in operation, but the number of students is only about 50. WSJ reported that the facilities are also outdated, with tiles broken in various places and the overall condition of the buildings being poor.
The New York Military Academy website introduces Lu as the founder of Guanghua Education Group in Shanghai, China, and as the chairman of the school's board of trustees. According to the website, Guanghua Education Group owns several prestigious schools and educational research institutions.
Lu has announced a blueprint to increase the student body to 1,500 and to completely renovate the campus facilities. WSJ pointed out that "the school's ownership structure and for-profit model are complicated and lack transparency," and added, "Moreover, with recent U.S.-China relations deteriorating, it may be difficult for a Chinese businessman to move funds out of China and into the United States."
Meanwhile, President Trump stated that he attended the school from 1959 to 1964, between the ages of 13 and 18, as his parents wanted to correct his 'rough and rebellious' behavior. In his book "The Art of the Deal," he wrote, "I wasn't happy when my father decided to send me to this school at age 13, but I learned a lot about discipline there and also learned how to channel my aggressiveness into achievement."
He also said at the West Point (U.S. Military Academy) graduation ceremony on May 25, "I attended a high school not far from here and visited this place many times. It's a good place."
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