Israeli Tech College SVCollege Shuts Down, Leaving Students Out Thousands of Shekels

SVCollege, an Israeli technology and high-tech training institution, has ceased operations and is preparing for insolvency proceedings after a last-minute deal to sell its activities fell through. The college, which has trained thousands of students since 2015, stopped providing services, leaving approximately 100 students who had paid thousands of shekels for professional courses in limbo.

Efforts to salvage the college, operated by SVProtect Ltd., included a non-binding memorandum of understanding signed in mid-September with Tafen (I.E.L.) Israel Ltd. for the acquisition of its operations. However, negotiations failed to result in a binding agreement, and the deal was abandoned last weekend, leading to the rapid cessation of the college's activities.

Students like Or Shimon, who enrolled in a social media management course with AI tools for 7,800 shekels, are distressed. Shimon stated, "The money is gone. There's no one to talk to," expressing frustration that the college accepted payments while in financial distress. He added, "I want my money back, they ruined me."

The company attributes its financial decline to the ongoing war and changes in the high-tech market, stating it took out millions in loans to cope. SVProtect claims that when it feared it could not meet its obligations, it stopped selling courses to new students and began seeking an investor or buyer to minimize damage to students and staff.

SVCollege is offering students unlimited access to recorded courses and potential training certificates upon completion of requirements. They are also exploring agreements with other colleges and considering a court-appointed receiver to find a new buyer. However, the company admits it is facing significant financial distress and cannot guarantee refunds to students or other creditors at this stage, with their claims subject to legal proceedings.