THE CASH STUFF FOR SEPT. 3RD, 2026

 SAU OUTLINES COST-CUTTING

MEASURES TO FORESTALL

CLOSING ITS DOORS

By Cash Michaels

Contributing writer

We now know what the beleaguered administration at St. Augustine’s University (SAU) in Raleigh says it plans to further do in order to forestall having the doors to its downtown Raleigh campus close after 158 years.

Recently it was revealed by an attorney for the small, private historically Black Episcopalian university that in a shocking cost cutting measure, SAU would not offer any academic or educational courses during its fall semester, effectively putting itself out of business for the time being, according to the federal bankruptcy Judge David Warren.

In the most recent Chapter 11 bankruptcy court hearing last week, university officials revealed to its creditors how it will furthermore reduce its monthly expenses in order to meet its fiscal obligations. Of the 300+ creditors SAU owes money to, it owes the Internal Revenue Service alone an estimated $14 million.

During the course of those revelations, the alleged previous actions by former SAU Board of Trustees Chairman James Perry and Vice Chair Brian Bouleware were called into question, with Bankruptcy Judge David Warren questioning why the institution never maintained liability insurance for its trustee board officers and members.

A frustrated Judge Warren at point told the defendants that SAU’s bankruptcy case held “too many surprises” due to a “lack of professionalism” by the trustee board leadership. 

“I’m just astonished people in fiduciary capacity for a university did not have a (directors & officers) policy,” Judge Warren said. “What else is out there that I don’t know about, or the public doesn’t know about?”

The alleged fiscal mismanagement actions of the former Board chair and vice chair are considered to be responsible for putting SAU into the dire financial straits it now finds itself in, including loss of its accreditation. As a result, new SAU board leadership has taken over while the previous chairman and vice chairman are no longer members.

On top of the millions of dollars SAU reportedly owes creditors, the judge was asked to order an automatic stay of a discrimination lawsuit filed against SAU by the estate of former President Dr. Christine McPhail. Dr. Mc Phail died several months ago. In order to prevent the cost of defending itself against the lawsuit from accruing, the judge issued a stay in the matter.

The school informed the court that it wanted to hire a real estate advisor  to help in selling off some of the $200 million in acreage it holds in order to help payoff its debts.

Before scheduling the next bankruptcy hear of October 1st, the judge ordered SAU’s legal counsel to prepare an update on the status of the school’s current insurance coverage and on its cash collateral budget.

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