Helsinki Design School has announced the end of its operations following a bankruptcy filing, confirming years of financial strain that worsened after the COVID-19 pandemic.
A notice published on the school’s official website stated that the institution’s activity would cease through a “normal bankruptcy procedure”.
The school, which operated privately from Bulevardi in central Helsinki, attributed its financial collapse to a combination of falling revenue, payment delays to lecturers, and loss of student trust following recent media coverage.
Lecturers and students were informed that teaching had been suspended in late October. The statement said: “We deeply apologise to the students whose studies will remain incomplete.”
According to the school, its financial situation deteriorated annually from the start of the pandemic, with a brief recovery in the autumn of 2025 when some student groups returned to pre-pandemic levels. However, the impact of media reports published on 13 October accelerated the crisis.
After articles appeared in Helsingin Sanomat, Ilta-Sanomat and Iltalehti, several students reportedly withdrew their enrolments. No new applicants joined, and some lecturers cancelled upcoming sessions.
The school stated that, as a tuition-funded institution, the immediate drop in income made continuation impossible.
Lecturers interviewed by Helsingin Sanomat said they had experienced long delays in receiving payment, in some cases waiting several months. The school has now confirmed that these delays did occur.
The statement acknowledged “significant delays” in compensating teaching staff but claimed that large voluntary late fees, amounting to thousands of euros in some cases, had been paid to compensate.
According to the school, most 2025 teaching fees were paid in advance, and remaining debts were reduced where possible. One named lecturer had ended cooperation earlier due to student feedback, while another had received payment ahead of schedule just before the critical media coverage appeared.
Lecturers who are still owed money have been advised to apply for state wage compensation schemes. All remaining claims will be handled by the bankruptcy estate administrator.
Helsingin Sanomat reported earlier that the school’s owner had received substantial personal income in recent years. In response, the school stated that the owner had taken out large personal loans to keep the school running and had used salary withdrawals to meet loan repayments.
It added that the owner, now facing the realisation of those risks, stands to lose all personal assets due to the guarantees made on behalf of the school.
In the Helsingin Sanomat article, the design industry association Grafia criticised the school’s operations, including its use of terms like “degree” and “programme” in marketing materials.
The school defended this terminology, citing prior consultation with educational authorities and noting that other institutions, such as Rastor-Institute, use similar naming practices. It stressed that its courses have never claimed to be state-recognised qualifications and have never been eligible for public support such as Kela student benefits.
Grafia’s leadership was also involved with the school. Its current chair reportedly lectured at the school in earlier years, receiving standard compensation. A previous chair gave a lecture in 2024 and was paid over €1,000 for a three-hour session, with payment delayed by 11 days.
The school ended its statement with repeated apologies to students and lecturers, thanking those who had supported its operations throughout the years.
“We did everything possible to ensure that your group could complete its studies. Unfortunately, we could not achieve this and are extremely sorry,” the school said.
It also highlighted the positive feedback received from students and pointed out that, for many years, new applicants had joined based on personal recommendations.
“No lecture had been cancelled before the media articles were published,” the school said. “Lecturers always turned up, including several nationally awarded graphic designers.”
During its years of operation, the school claimed to be the largest employer in Finland’s creative education sector.
HT
