College Collapses Days Before Classes, Leaving Students Out Thousands

SVCollege, a vocational school that trained thousands in high-tech and digital marketing since 2015, has ceased operations due to severe financial difficulties. The company operating the college, S.V. Techpro, informed the court that it is insolvent and does not oppose liquidation. This declaration followed a liquidation request filed by two former employees who claim they did not receive salaries for August and September 2026, nor their full social benefits, including severance pay and pension contributions. The company also faces debts to suppliers and students who paid for courses that will not be held.

In its statement to the court, the company stated it cannot continue operating as a going concern or meet its obligations, deeming liquidation and the appointment of a trustee the appropriate course of action. The closure has left students who paid thousands of shekels for professional training without the courses they purchased and with uncertainty regarding financial reimbursement. The college informed students that due to its financial state, it cannot refund payments for courses that will not take place, affecting both those whose training was ongoing and those whose courses had not yet begun.

Amidst the crisis, a rival institution, Ikum College, offered to absorb students who had paid in full for cyber, artificial intelligence, and digital marketing courses that had not yet started, without additional fees. Ikum College also indicated it would explore ways to help students who had made partial payments and potentially hire some of the affected lecturers and academic advisors. However, this offer has met resistance from students who demand contract cancellations, cessation of future payments, and full refunds, arguing they did not agree to transfer to another institution and that the offered courses may not match their original purchases in content, hours, or format.

Some students also expressed concerns about payment arrangements made through external financing companies, particularly regarding the ability to halt future payments without incurring further obligations. The company that ran SVCollege stated its management sought alternatives for students to complete their studies at other institutions at no extra cost. As of now, the court has not yet ruled on the liquidation request, leaving students with unresolved questions about refunds and future payments, while the option of transferring to another college is not universally accepted.