In the new world of school choice, parents have to be savvy shoppers. Opening up K-12 education to all comers, regardless of their background or qualifications, is a risky business. And when the “business” of school is run for profit, parents should beware. They and their children are usually pigeons, drawn in to fatten the founders’ bank account.
Claire Suddath of The New York Times dug deep into the story of a chain that expanded too quickly and became “a $440 million fiasco.”
I attach a gift article so you can read the story in full. It is not behind a paywall.
Suddath wrote:
A man with a vision set out to revolutionize preschool. It became a $440 million fiasco.
Ten years ago, a Montessori enthusiast named Ray Girn had a vision. He wanted to bring high-quality, child-led education to as many babies and toddlers as possible, with a chain of for-profit schools that would grow at the pace of a tech start-up. He spoke about doing for preschools “what ride-sharing apps or Airbnb have achieved,” and he raised $335 million from investors, including venture capital and private equity firms, to make it happen.
For a while, Mr. Girn’s schools, which operated under the brand Guidepost Montessori, appeared to be successful, with 150 locations that served tens of thousands of children. But they also ran up an astonishing $440 million in losses. The parent company, Higher Ground Education, filed for bankruptcy in June 2025 and shuttered about 60 schools.
In Oregon, parents received an email notification on a Sunday afternoon that their school effectively no longer existed. In Wisconsin, a father went to drop off his 5-month-old son at a Guidepost only to find it had closed. In California, a mother learned that her children’s Guidepost had been sold and that its Montessori curriculum would be replaced with artificial intelligence. Guidepost teachers and parents lit up Facebook and Reddit groups with horror stories — allegations of neglect and mistreatment that made a lot more sense now that everyone knew how mismanaged the company had been.
For-profit education ventures are notorious for disappointing investors and leaving parents fuming. But even in this context, the Guidepost story is striking. “Schools close sometimes, but usually not this many, and not all at once,” said Rebecca Winthrop, who directs the Center for Universal Education at the Brookings Institution.
What could have caused such a collapse? More than two dozen former teachers, administrators and corporate employees told me that they were deeply concerned by the company’s business model. Seven independently described it as a pyramid scheme. “We were calling it the Montessori Ponzi scheme internally,” said Alex Richardson, a teacher at Guidepost’s first school, in Orange County, Calif.
When Higher Ground opened new Guidepost schools, it often received large advances from landlords to improve their properties. As long as the company kept expanding, it seemed from the outside as if it were thriving. But when it came time to repay the landlords, and growth was no longer an option, the company collapsed. By the end, some Guidepost locations were losing $50,000 a month.
Mr. Girn is still active in the education industry. Last year, he and his wife, Rebecca Girn — the other founder of Higher Ground and its general counsel — welcomed me at a converted ranch-style house outside Austin, Texas, where they’ve already opened another school, called Fulcrum. Their three children are among the students…
Guidepost was not the first school chain that Mr. Girn had run at an unsustainable pace. Back in 2003, when Mr. Girn, a Canadian native, was a psychology and philosophy student at the University of Toronto, a friend suggested he come work at a school in Orange County called LePort Montessori. It was founded by a wealthy bariatric surgeon, Peter LePort, who sat on the board of the Ayn Rand Institute. Mr. Girn had no formal training in education, but he ran a Rand-focused club on campus. That was enough for Mr. LePort, who hired him to help start a new elementary school.
Mr. Girn became devoted to the Montessori method, which encourages children to direct their own lessons, with teachers as guides. “It’s as close to perfect as human education has ever gotten,” he once said at an Ayn Rand Institute conference. Traditional schools stifled children’s innate love of learning, he thought, and day care programs could be especially oppressive. “They’re literally putting the child behind bars, moving them from rocker to high chair to container,” he said. Montessori could free them.
In 2009, Mr. Girn became the chief executive of LePort. He envisioned turning the company into a national chain (“We had the opportunity to become the child care provider for SpaceX,” he said). But he was more focused on growth than Mr. LePort was comfortable with. In 2016, Mr. Girn was fired.
He resolved to try again, this time with a chain of schools that he could control. He and Ms. Girn formed Higher Ground and hired several of LePort’s corporate staff members. Some LePort parents soon followed, including Greg Mauro, a founding partner of Learn Capital, a venture firm known for backing education start-ups. Learn Capital invested about $1 million, and Mr. Girn opened his first two Guidepost schools. Within three years, the company had 27.
Guidepost employees describe these early schools as thoughtfully planned. White-walled classrooms were outfitted with charming, toddler-sized furniture made of pale, unfinished wood. “Everyone cared so deeply,” said Kiana Kometani, who in 2019 became the first head of school at a Guidepost in Folsom, Calif. Teachers spoke about fostering each child’s intellectual curiosity, of giving them agency before they could tie their shoes.
Mr. Girn was a skillful pitchman. He promised parents something rare: the rigorous education of a high-end preschool, but with the hours of a commercial day care. Most Guideposts were in wealthy places — Walnut Creek, Brooklyn Heights — and appealed to the kind of dual-income families who could afford the equivalent of a small sedan in preschool tuition.
“Guidepost catered to the elevated intellectual type,” said Emily Tkaczibson, who paid about $4,000 a month for her two children to attend a Guidepost in Tigard, Ore. “We would have recommended the school to anybody.” Matthew Espie, another parent in Tigard, considered himself “lucky” that his youngest child got off the waiting list after only 10 months.
There were signs, though, that the company was trying to do too much too soon. Mr. Girn expanded abroad, opening schools in Hong Kong and mainland China in 2019. Mr. Richardson, the Orange County teacher, said around that time, three Chinese toddlers came to his school for reasons that were never explained. None of them spoke English, and the Guidepost teachers didn’t speak Mandarin.
“One toddler would stand there and cry and say the same word over and over again,” Mr. Richardson said. “We learned later that she was yelling for her mom, but at the time we didn’t know. We couldn’t understand her enough to help her.”
Please open the link and finish reading this fascinating article. Turning education into a business opportunity is dangerous.





