English school goes bust

A Waikato private English language school has gone bust, leaving more than 60 students thousands of dollars out of pocket and potentially homeless.

Yesterday morning liquidators were called into Planet English, in the New Zealand Post building on London St in Hamilton.

Staff and students who arrived for classes were told the doors would be closed for good. The school also has a class of 12 students in Cambridge.

Many of the students, mainly from China and Korea, had paid between $7000 and $15,000 for tuition and accommodation fees to the school before they arrived in New Zealand. The liquidation also affects families paid by the company to house the students. Planet English owner Luke Watson blamed the market situation and the outbreak of Sars as factors contributing to the school's downfall.

He said there were "101 factors" that could have contributed to the liquidation, and a number of decisions that should have been made.

However, that has not satisfied students who paid their fees well in advance of the Sars outbreak.

Student Xiao qing Wang, who paid $7665 before starting a four-month course in April, said: "I want to know why my money wasn't put in a trust fund and why it wasn't protected."

A meeting for the students to discuss the situation and their visa requirements has been set up.