ILAC Education Group in Canada files for bankruptcy
Major Canadian language school operator ILAC has filed for bankruptcy, impacting at least 1,000 international students.
The ILAC Education Group, a major provider of English language training in Canada, has filed for bankruptcy. The abrupt closure, announced on its website late on Friday, September 18, leaves at least 1,000 international students scrambling for answers about their programs and visas.
ILAC stated its immediate priority is to support students and partners through the change. The company promised that next steps would be communicated directly to those affected and updated online as information becomes available. Information regarding current programs, student services and next steps will be communicated directly to those affected and will be updated on this website as information becomes available, ILAC said.
Sector faces ripple effects
The news marks the second major closure in the sector within a week, following EC English's decision to shut its schools. Stakeholders have described ILAC's bankruptcy as "the end of an era." They warn of significant ripple effects, including financial fallout and a potential loss of confidence among international students.
Commenting on LinkedIn, Stephen Wharton, chief executive of Expo Vente a Canadá, said the closure would affect "a whole ecosystem." He expressed sympathy for the staff, students, and agents connected to the 30-year-old business.
A pivot to college partnerships
ILAC had recently expanded beyond language training. Beginning in late 2020, the group moved into public-private partnerships (PPPs) with Canadian colleges. These partnerships allowed international students to study college programs at ILAC's campuses, a pathway that previously led to post-graduate work permits (PGWPs).
The company formed key partnerships with two Ontario colleges, launching programs as outlined below.
| College Partner | Partnership Announced | Program Launch Details |
|---|---|---|
| Georgian College | Late 2020 | Three programs at ILAC's downtown Toronto campus. |
| Fanshawe College | 2021 | Programs began in spring 2022, with a goal to double international enrolment. |
In summer 2023, ILAC and Fanshawe College opened a larger downtown Toronto campus with 44 classrooms, serving approximately 1,200 international students. ILAC also acquired Tamwood College in 2023.
Government rules trigger market shift
The landscape for these partnerships shifted dramatically in January 2024. The Canadian government announced a cap on international student visas and new rules restricting PGWP access for graduates of public-private college partnerships. These rules took effect in September 2024, causing a major market contraction.
In response, ILAC announced a business pivot in 2024, which included expanding its online school, ILAC KISS, and acquiring a digital recruitment platform called UniApplyNow. Despite these adaptations, the group has now filed for bankruptcy protection. The founders of ILAC were Jon Kolber, Ilan Cohen, and Bernardo Riveros.
