ICON CLOSING EMAIL

Dear ICON Staff,

With a heavy heart, I write to share that Icon Collective will be permanently closing its doors as of today, Thursday, May 29th.

I know this news comes as a shock, and I fully recognize how deeply it affects each of you, personally and professionally. You have poured your energy, creativity, and care into making ICON more than a school. You made it a home for artists, a place where students found their voices and each other. I wish we had more time to make this announcement and give everyone the space to prepare, but key factors explained below accelerated this decision, removing the possibility of earlier notice.

For context, from 2023 through the projected end of 2025, Icon Collective will have incurred operating losses totaling $2.8 million. Despite knowing the company was operating at a significant loss as early as 2023, I made the decision that we should move forward, personally funding deficits so operations could continue uninterrupted. I was willing to risk everything, and I did, in the hope that rising enrollment and a strategic partner would lead us to regain the GI Bill, and eventually Title IV funding.

Although the financial burden ultimately proved greater than could be sustained, I know we did the right thing. It was our combined efforts, your unwavering commitment, talent, and professionalism, with everything I was able to contribute behind the scenes, that enabled us to deliver a transformative education far longer than the numbers and the revenue alone would have allowed. Together, we upheld the mission of ICON with integrity and heart.

I worked diligently in recent months, once I gained ownership, to explore every possible path, from restructuring budgets and reducing staffing to seeking definitive commitments from potential investors and partners. After exhaustive analysis, I reached a sobering conclusion: even with major cuts and possible extreme layoffs, the revenue shortfall remains too severe. In 2025 alone, operating expenses are projected at $5.2 million, while enrollment is expected to yield only $3.8 million in revenue, leaving a $1.4 million gap over the next 7 months, a deficit too great to be bridged, even with the generous concessions extended by our landlords.

As an example of the current enrollment deficit, in January 2024 we had 147 on-campus students. This quarter, by contrast, we have 98, a difference of nearly 50 students. For comparison, to sustain operations, we would need 250 enrolled students on campus per quarter. With on-campus enrollment having dropped below 100, the fixed costs required to operate the school are no longer sustainable. The loss of the GI Bill in 2023 was a heartbreaking setback, one that closed the door on serving many veteran students and weakened one of our strongest channels for enrollment stability.
This week alone, the ban on international student visa interviews by the U.S. State Department added an unplanned $144,000 deficit to our expected tuition revenue, reducing our planned run time and accelerating our closure. There is no viable, low-risk path that would, at this point, sustain operations and protect the financial obligations we hold in good faith to each other and to our students.Continuing under these conditions would push remaining resources to a critical point, one where I could no longer guarantee payroll, including your final paychecks. That is a risk I’m not willing to take. You have given so much to this collective, your time, your heart, and your talent and I carry a deep responsibility to ensure your compensation and this wind-down process are handled with the same care and respect you've shown throughout.My priority is to ensure a respectful and orderly transition for both students and staff. This includes:

    •    Notifying students and supporting them through next steps, including access to tuition recovery resources through the BPPE and the Student Tuition Recovery Fund (STRF)
    •    Safeguarding and transferring academic records to ensure they have what they need for the future

For today, Thursday, I ask that only the following staff members come to ICON and use the side parking lot access door to enter the building: John Coffey, David Garcia, Candace, and Mylah. Please keep possible student interaction in the parking lot to a minimum. If you are approached or stopped outside, kindly let them know that more information has been posted on the front door and that you do not have further details to share at this point.
For all staff, there will be a voluntary, non-mandatory Zoom meeting today, Thursday, at 12:00 PM. This is an opportunity to ask questions, share thoughts, or simply connect as we process this transition together.
Join via this link: [REDACTED]

We will also have the side parking lot door open on Friday from 1:00 to 3:00 PM so that remaining staff may come and gather their personal belongings. Berny will be processing your final payroll, which will be made available directly to your deposit accounts on Friday. Please contact xxxxx for health benefit info as well.
Our legacy will not soon be forgotten. The impact of your work, your artistry, dedication, and care, will live on in the students you’ve guided and the community you’ve helped shape. Thank you, sincerely, for being part of this journey.
In closing, I wish I had the opportunity to share this message with each of you personally, but the timeliness of the situation did not allow for it. Please know that I welcome any thoughts you wish to share with me directly. We will, of course, be happy to provide letters of recommendation or any documentation needed to support your next steps. It has been a true honor to work alongside you. Your contributions will always be remembered, and I remain deeply grateful for the time we shared at ICON.

With respect,
David Alexander Valencia
Founder, ICON Collective