The Fashion Institute of Design and Merchandising is set to lay off more than 300 people following a tumultuous year for the downtown Los Angeles school that includes its pending sale to a French academic institution.
The FIDM layoffs were disclosed in a state filing on Monday and total 322 employees, including directors, department chairs and faculty.
“This letter is to inform you that FIDM is now contemplating a transition event which is currently expected to result in a change of control of its operation to a new, third-party corporate parent and the termination of employment for all of FIDM’s remaining staff and faculty members,” FIDM Executive Director of Human Resources V. Kim Wetzel wrote in the school’s notice to the state.
Wetzel went on to say in the filing it’s likely a “substantial percentage” of non-faculty staff and some active faculty will receive employment offers from the new ownership at the school’s current location in downtown once the sale closes.
FIDM did not immediately respond to a request for comment Wednesday.
The layoffs are effective for non-faculty and inactive faculty on Dec. 29. Layoffs of active faculty are effective the following day, according to the FIDM notice to the state.
The cuts come as FIDM’s sale to Skema Business School is expected to close in early 2024 at which time it will be renamed Skema Business School L.A. with a focus on what was described as “creative business and management programs.”
Skema is an acronym for School of Knowledge Economy and Management.
FIDM’s Business Challenges
The layoffs and sale add to what’s been a rollercoaster year for FIDM during which it risked losing accreditation from the Western Association of Schools and Colleges Senior College and University Commission (WSCUC). School accreditation is key for students who receive federal financial aid.
FIDM, according to a March WSCUC notice sent to founder and President Tonian Hohberg, has seen enrollment and revenue fall, “with no viable plan for improvement.”
The letter said, “FIDM has not provided evidence of long-term financial viability” and noted the U.S. Department of Education required the school to post a roughly $2.7 million letter of credit. Schools are required to maintain a certain level of cash reserves to make any refunds or returns of federal student aid.
“The institution needs aggressively to pursue additional revenue sources to assure its long-term financial viability,” the March notice said.
Transitions
FIDM sought to bolster its financial future via its April merger with Arizona State University’s fashion program at the Herberger Institute for Design and Arts, which created ASU FIDM.
Financial terms of that deal were not disclosed.
At the time of the announcement, FIDM was to continue as an independent school, offering studies focused on the business of various creative industries.
An ASU spokesperson told Vernon Proper Wednesday the layoffs reported to the state are unrelated to the ASU FIDM fashion program or its employees and instead impact the school’s business courses associated with the pending Skema sale.
For ASU’s part, its deal with FIDM further expanded the university’s Los Angeles footprint. Locally, the school also counts the ASU California Center, which is located in the former headquarters of the Los Angeles Herald Examiner newspaper in downtown.
For an update on the FIDM sale to Skema, click here.
One Comment
WOW. As a former employee of FIDM I feel most sorry for the students, graduates and parents who sent their children to FIDM. Those graduates now have degrees from a school that is closed forever. A school that charged them an insane amount of money for a degree that is worthless. In particular, the people that graduated from the FIDM bachelor’s program were told they would be competitive with schools like USC, UCLA, etc. Employees were instructed to market the program to students at FIDM as a way to get a 4 year degree much faster than transferring to a traditional college (as most classes and credits at FIDM are NOT transferable to any other school..) in additon, FIDM graduates no longer have access to advisors or instructors that are immersed in the fashion industry…which they were promised lifetime access to. So sad for these graduates…many of them will be paying off their loans for years!!!!