Carich chief's rescue bid

By ALAN PERROTT education reporter

Carich Training Centre founder Caron Taurima was yesterday trying to stitch together a rescue package to save the jobs of staff and ensure students can continue their studies.

More than 200 staff and 2000 students are affected.

Placements for all but 50 students studying Carich-run courses were expected to be finalised next week.

But there was nervousness within the private education industry, with some likening the Carich collapse to watching a corporation like Carter Holt Harvey go belly-up.

"If an institution with the size and mana of Carich can fail, then who is safe?" asked one school owner.

Mrs Taurima admitted her company had been in financial difficulty, but she had thought she would be saved by about 2000 students to be provided by Te Wananga, a Maori-operated tertiary institution with more than 50,000 students.

In anticipation of their arrival, Mrs Taurima said she had employed extra staff, expanded her facilities and spent $500,000 on advertising. But she claimed the contract was terminated just three days before the students were due to arrive. The final blow came on October 22 when Mrs Taurima found she did not have the money to cover her wages bill.

"I had a good cry each night up till we went into receivership on Wednesday. But when that happened I felt like the load had been lifted and I could stand tall, go out and shake the hands of my staff and students and say 'sorry'."

The Ernst & Young Entrepreneur of the Year said she could still look her staff and students in the eye because she had done everything possible to save her company.

Te Wananga O Aotearoa chief executive Rongo Wetere said he was saddened by the failure of Carich but said the school should not have been reliant on his students.

About 12 education providers are now in talks with receivers KPMG to buy some or all of the business.

It is not known what value is being placed on Carich Training but Mrs Taurima said she was offered $20 million for the company last month.