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A German B-School Goes Kaput and the Finger-Pointing Begins

GISMA graduates celebrate in 2012 in front of the University of Hanover's main building
GISMA graduates celebrate in 2012 in front of the University of Hanover's main buildingPhotograph by Nigel Treblinka/DAPD

A business school in Germany has declared bankruptcy after struggling for a year with low enrollment in its full-time MBA program, and it blames its partner school, Purdue’s Krannert School of Management, for cutting off the flow of students.

The bankruptcy ends a 14-year run for the Graduate International School of Management and Administration (GISMA) in Hanover, which was founded in 1999. In a German-language statement (PDF) posted on the school’s website on May 14, GISMA said the problems started in 2012, when it could only enroll 24 candidates for the full-time MBA program. The school’s website lists the class size for the program as 60. The drop in enrollment resulted in “financial constraints” that cost-cutting could not alleviate, the statement said.