Kroll secures future of Kirkham Grammar School with international sale

A historic grammar school in Lancashire has been sold out of administration, having cited financial pressures, including the introduction of taxation on private education. Kirkham Grammar School was transferred to new ownership by professionals from Kroll.

Founded in 1549, Kirkham Grammar School is a selective, co-educational private day and boarding school in Kirkham, Lancashire. Its roots can be traced back to the chantry school attached to St Michael’s Church in the 13th century.

Kroll, a provider of global financial and risk advisory solutions, oversaw the successful sale of Kirkham Grammar School and its site, to Maharishi Mahesh Yogi Sanastha (MMYS), an international education group with schools and educational institutions across Australia, the US, India and Europe.

According to the administrators, the transaction not only secures the future of one of the country’s oldest independent schools. It also ensures the continuation of educational provision and builds for a stronger future, with new owners have committed to “substantial investment in the school’s facilities, educational provision, boarding offering and wider pupil experience”.

Philip Dakin, managing director for restructuring at Kroll, commented, “This transaction safeguards the continuity of education for pupils, provides reassurance and opportunities for staff, and preserves an institution that has served generations of families for almost five centuries. The School is now well positioned to thrive under its new ownership, benefitting from both significant investment and enhanced international connections whilst retaining the values and heritage that make Kirkham Grammar School so special.”

MMYS has also outlined plans to position Kirkham Grammar School as the flagship institution within its growing UK educational portfolio. And while the move is expected to create new opportunities for international collaboration, the new ownership also aims to maintain the values and traditions that have defined Kirkham Grammar School for generations.

Changing times

It follows financial pressures on the school’s business model. Kirkham Grammar School’s chair of governors, Paul Ribchester, contended that “a combination of factors had made continued operation under the previous ownership structure unsustainable”. Among these were “significant increases in employer National Insurance contributions” and “the introduction of VAT on independent school fees.”

“In order to thrive, independent schools must evolve, and despite sector-wide challenges, the future of our school is bright,” he added. ”This acquisition is a positive outcome that preserves the educational purpose of Kirkham Grammar School.”

Since 2024, many public schools have had to re-evaluate their finances – with the incumbent Labour government having made a historic 20% VAT tax for private school fees part of its manifesto, as it cruised to a crushing electoral victory two years ago. Previously, private schools have not had to contend with VAT, because of a legal exemption for organisations providing education.

This has been a bone of contention in Britain for generations – as it not only allows wealthier families to disregard the state of the education system poorer children have to use, but they can channel funds into improving private resources that the wider population cannot access. This has long been argued to be a way in which working class students are priced out of obtaining high-standards of education, and hinders social mobility.

Proponents of taxing public/private schools suggest that the funds raised can help resource state schools better – while also ensuring more parents take an interest in the condition of those institutions, because they might have to actually send their children there if funds get tight. The jury is still out as to whether that is happening.

Following Labour’s landmark policy change, parents in some communities across the nation became increasingly anxious about their ability to afford higher fees and the future of their children’s private education. As a result, the volume of Google searches for "best state secondary schools in UK" rose by 80%, and searches for "how many state schools in the UK" increased by 50% around the time of the 2024 general election.

This suggests many parents were concerned they may not be able to afford private education under Labour’s plans and are considering state options. However, this might not inherently mean they are going to help usher in a new golden age in state education. The study also found that there had been a 300% hike in searches like “how does homeschooling work?” and a 200% increase in “the pros and cons of homeschooling”.