Kerry Walk, the president of the University of the Arts in Philadelphia, has resigned her post after the renowned school announced it would soon close its doors. She had served as president for less than a year.

The school announced on May 31 that it would close by June 7, canceling scheduled summer classes, stating it has been “in a fragile financial state” with “many years of declining enrollments.”

According to its website, the university had about 1,313 students in Fall 2022 and about 77 full-time faculty members. Tuition cost about $50,950 per year, though the university boasted that it awarded more than $32 million per year to students.

However, by its closure, the 150-year-old institution’s enrollment had fallen to 1,149 students, The New York Times reported. Enrollment was 2,038 in 2013.

“We could not overcome the ultimate challenge we faced: with a cash position that has steadily weakened, we could not cover significant, unanticipated expenses,” Walk and board chair Judson Aaron said in the statement. “The situation came to light very suddenly. Despite swift action, we were unable to bridge the necessary gaps.”

It was not clear what those unanticipated expenses were. However, the recently unionized faculty had just reached its first tentative contract agreement with administration in February after dozens of bargaining sessions led frustrated faculty to the brink of picketing.

Aaron followed that statement up with another on June 4 announcing Walk’s resignation. In her absence, the board has hired the management consulting firm Alvarez and Marsal to guide the institution through the closing process.

“Our next steps include developing a teach-out plan to enable our students to seamlessly continue their degrees at other high-quality institutions,” Aaron wrote. The school is working with Temple University, Drexel University, and Moore College of Art and Design, among others, to transfer students. “We also remain committed to taking whatever actions are feasible to support our incredible faculty and staff through this challenging time.”

United Academics of Philadelphia, under which the faculty’s union was organized, said in a statement that it was “appalled” by Walk’s decision to resign ahead of an impact bargaining section scheduled for the day of her resignation, which was canceled.

“It has been five days since the abrupt decision to close with no answers or explanations,” the union said. “Both President Walk and the Board of Trustees that appointed her have behaved disgracefully and irresponsibly.”

The union has called on Aaron to begin negotiations immediately on severance and benefits for affected faculty, and offer transparency to students about what happened. In the meantime, the union has been organizing marches and rallies with faculty and students outside of Aaron’s offices.

The University of the Arts traces its origins back to the mid-19th century. It was formed through the 1985 merger of two prestigious institutions: the Philadelphia College of Art, founded in 1876, and the Philadelphia College of the Performing Arts, established in 1870.

The news comes just months after the Pennsylvania Academy of the Fine Arts, founded in 1805 by the artists Charles Willson Peale and William Rush, announced it too would stop granting degrees after the 2025 graduating class. The decision had been approved by PAFA’s board of directors after attempts to salvage the college were unsuccessful.

“The higher education environment has become increasingly complicated by rising costs, expanding requirements, and dwindling enrollment,” PAFA president Eric Pryor had written in an open letter. “Colleges and universities in our own region and across the country are struggling with these trends. PAFA, unfortunately, is no exception.”

The University of the Arts had previously announced that it would host some of PAFA’s transfer students. It remains unclear what will happen to such students who had once attended PAFA.