The International Language Academy of Canada (ILAC) filed for bankruptcy and closed its doors abruptly on September 18, according to reports from CityNews. Students and faculty members describe being entirely blindsided by the sudden shuttering of the private English language school, leaving tuition payments in limbo and visa statuses threatened.
Sudden Closure Blindsides Students and Faculty
For students like 17-year-old Nikita Emelinov, who moved to Canada from Russia last year, the bankruptcy notice arrived via email just two weeks into his second year of studies. Emelinov and his family are now out nearly $20,000 in tuition. Without a refund, his family cannot afford another private school, and his current visa status prevents him from enrolling in a public institution.
Former staff and students report that operations appeared normal right up until the closure. Thomaz Bartolomei, a former teacher at the school, told CityNews that he and his colleagues were waiting to hear from their employer, noting that renovations were still underway on the building’s second and third floors. Former student Geiovanna Rios echoed that sentiment, stating that classes were normal and new staff were being hired just a day before the shutdown.
Financial Pressures and Immigration Policy Shifts
In a statement reported by CityNews, ILAC’s chief executive officer pointed directly to government policy changes as a core driver of the insolvency. “Limits on international students means fewer people can access the education and opportunities we were built to provide,” the CEO said, adding that the school faced severe financial challenges over the past three years and lacked the resources to keep operating.
Federal data highlights the sharp drop in volume driving these institutional pressures. The Government of Canada’s 2026-2028 Immigration Levels Plan aims to curb temporary worker and student arrivals to relieve pressure on housing and infrastructure. While nearly 300,000 study permits were issued in 2024, that figure fell to just under 115,000 in 2025 and is on track to drop even further this year.
Did you know? Study permit numbers dropped from nearly 300,000 in 2024 to under 115,000 in 2025 as part of federal efforts to ease housing and infrastructure strains across Canada.
Trustees Appointed as Families Seek Answers
KPMG Canada has been appointed as the trustee in bankruptcy for ILAC to manage the insolvency process. The firm has provided a dedicated email contact for individuals with outstanding funds or claims against the institution.
Meanwhile, displaced students face secondary complications tied to their legal status. J.P. Salaroli, a former student interviewed by CityNews, noted that work permits tied directly to study permits became invalid upon closure, creating immediate financial strain in expensive urban centers like Vancouver. Affected families and staff continue to look to regulators and the provincial government for guidance regarding refunds, academic records, and transition pathways.
Frequently Asked Questions
Who is handling the ILAC bankruptcy proceedings?
KPMG Canada has been appointed as the trustee in bankruptcy for ILAC and has set up an email contact for individuals seeking information regarding outstanding funds.
Why did ILAC close so suddenly?
ILAC leadership cited mounting financial challenges over a three-year period compounded by federal policy limits on international student permits, which sharply reduced enrollment numbers.
What happens to the study and work permits of affected students?
Because many student visas and associated work permits are tied directly to active enrollment at a designated learning institution, sudden closures leave students scrambling to secure alternative placements to maintain legal status.
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