Tutoring center franchise closes abruptly

Then they found a letter taped to the door, Mariza Stewart said. It was from the director and owner of the center, Sandra Kennedy.

“As of Monday, September 8, 2014, Ardnas Inc., doing business as Sylvan Learning Center in Tucson, will permanently close all of its locations in Tucson, Arizona,” the letter read.

Mckenzie had been taking reading lessons biweekly for the past six weeks at the center, a Tucson franchise of a nationwide chain based in Baltimore. Her parents, Mariza and Tony, had signed her up for a 10-month curriculum, which cost them $5,300. They also paid an $800 deposit.

Sylvan Learning Centers across the country offer technology-based tutoring sessions in math, reading, writing and test prep. The Tucson center, operated by the local company, Ardnas Inc., had four locations, including the one in the YMCA room where Mckenzie went.

Records show that Ardnas was founded in 1990 and first registered with the Arizona Corporation Commission in 1991. The franchise name “Sylvan Learning Center” first appeared in the ACC records in the 1997 annual report.

According to Mariza Stewart, Mckenzie was one of about 10 students in the reading class.

It is unclear how many students in total were affected by the local closing, as all of the phone lines led to automated voicemail alert that said the center was no longer in operation and the management’s contact information was not available.

The Mulcahy YMCA, at 2805 E. Ajo Way, from which Ardnas Inc. was renting a room for Sylvan classes, was notified just two days before the closing that the company would no longer be leasing from the YMCA, according to Amanda Thomas, communication director. The YMCA was also directed to a bankruptcy attorney for more information.

The letter taped to the door, which was the first and only communication the Stewart family received regarding the closing, offered little explanation about why the center was closing and asked customers not to contact any of the company’s employees. It directed them to contact C.R. Hyde, a Tucson bankruptcy lawyer representing the company. A copy of the letter was provided to the Star by the attorney.

Hyde said in an interview the company was in the process of filing for a Chapter 7 bankruptcy on Monday, which means all assets would be liquidated for creditors with no reorganization.

“Until the case is filed, it’s difficult to say how much people will get paid,” he said. But the company will try its best not to “raise eyebrows or cause any frustration or anger,” he added.

The decision to close the learning center was made late last week, he said. There was a letter that “circulated” informing parents of the closing, but he did not specify how or when it was circulated.

“We want to do this as equitably and fairly for the customers who have the deposits,” Hyde said.

Generally, creditors may have to wait a year or more after a Chapter 7 bankruptcy case is filed to receive any compensation, according to another Tucson bankruptcy attorney, Ross Meiners. What the creditors would receive is whatever the trustees may be able to recover in the process.

The abrupt closing of the Tucson locations of Sylvan Learning Center is not an isolated incident. At least a dozen other franchise locations have similarly closed down without notice in the past decade, according to news reports from around the country. Some of the more recent closings include franchises in Hadley, Massachusetts; Monroville, Pennsylvania; and Charlotte, North Carolina.

A spokesman for the Better Business Bureau of Southern Arizona, Nick LaFleur, said the organization was not aware of any complaints against Ardnas Inc. in the last three years. It was also not aware of the company’s closing.

It’s important for business owners to communicate with their customers, he said.

Communication with the company has not been good, Mckenzie’s parents said. They paid a lot of money up front, they said, because the program offers a steep discount if payment is made in advance, Mariza Stewart said. She and her husband want answers.

“It was money that had to be borrowed to pay,” she said.

The parents put down the money because they wanted to help Mckenzie with her reading and spelling, she said. And the program seemed to work: Their daughter was improving, and the program was a commitment for the whole family.

“I really feel sorry for all the students,” said Tony Stewart, Mckenzie’s father. “They wouldn’t be there if there wasn’t a big commitment on the parents’ part and the child’s part. It’s unfortunate the corporate wouldn’t step in to help and try and reorganize.”