Helsinki Design School has officially announced the termination of its operations after filing for bankruptcy, a decision that highlights the institution”s ongoing financial challenges, which were exacerbated by the COVID-19 pandemic.
A notice on the school”s official website indicated that it would cease operations through a “normal bankruptcy procedure.” Located on Bulevardi in central Helsinki, the school cited diminishing revenue, delays in payments to lecturers, and a decline in student trust as key factors in its financial downfall. This trust was notably affected by recent media coverage.
In late October, both lecturers and students were notified that teaching activities had been suspended. The school expressed regret, stating, “We deeply apologise to the students whose studies will remain incomplete.” According to the institution, its financial standing worsened annually since the onset of the pandemic, although there was a temporary recovery in the autumn of 2025 when some student groups returned to enrollment levels seen prior to the pandemic.
The crisis intensified following media reports published on October 13, which led to a number of students withdrawing their enrolments. With no new applicants and several lecturers canceling future classes, the school, funded by tuition, found it impossible to continue operations. Reports indicated that lecturers experienced significant payment delays, with some waiting several months for their compensation, a claim the school has now acknowledged.
The statement from the school admitted to “significant delays” in payments to teaching staff, but it also mentioned that substantial voluntary late fees, amounting to thousands of euros in some instances, had been disbursed as compensation. Most teaching fees for 2025 had been paid in advance, and the school attempted to reduce outstanding debts where feasible.
One lecturer ended their collaboration earlier due to feedback from students, while another received payment ahead of schedule, just before the critical media reports surfaced. Lecturers still awaiting payment have been encouraged to apply for state wage compensation programs. All claims will now be addressed by the bankruptcy estate administrator.
Earlier reports from Helsingin Sanomat revealed that the school”s owner had received considerable personal income in recent years. In response, the school clarified that the owner had taken out substantial personal loans to sustain operations and had utilized salary withdrawals to fulfill loan repayments. The school noted that the owner now risks losing all personal assets due to the guarantees made on behalf of the institution.
The design industry association Grafia criticized the school”s operations, particularly its use of terms like “degree” and “programme” in marketing efforts. The school defended its terminology, stating that it had previously consulted with educational authorities and pointed out that similar naming conventions are used by other institutions like the Rastor-Institute. It emphasized that its courses have never claimed to offer state-recognized qualifications or to be eligible for public support such as Kela student benefits.
Members of Grafia”s leadership were involved with the school, with its current chair reportedly having lectured there in previous years for standard compensation. The former chair delivered a lecture in 2024, receiving over €1,000 for a three-hour session, with an 11-day delay in payment. The school concluded its statement with repeated apologies to students and lecturers, expressing gratitude to those who supported its operations over 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 stated. It also noted the positive feedback it had received from students and acknowledged that for many years, new applicants were drawn in by personal recommendations. “No lecture had been cancelled before the media articles were published,” the school added, highlighting the consistent attendance of lecturers, including several nationally awarded graphic designers. During its existence, the school claimed to be the largest employer in Finland”s creative education sector.
