Students, staff upset after Palm Valley School moves to close

RANCHO MIRAGE, Calif. (KESQ) – Just days after celebrating the end of a successful school year, it was an abrupt end for students and their families at Palm Valley School.

For Zander Eaton, now a former student at the school, the announcement was shocking.

"We were completely under the impression a few days ago that the school was going to be saved, everything's going to be good. And then a couple of days ago, we got an email: [the] school is closing June 30th and there's not going to be a school next year," Eaton recounted. After finishing his junior year of high school, he fully expected to graduate with Palm Valley when the next academic year came to a close.

He said the back-and-forth communication left he and his family – including his little sister, who is in elementary school – unprepared. "The lack of communication just kind of leaves us all with a sense of betrayal from the board," he said. "We didn't feel like they cared about us, which really sucks, especially since, you know, we all thought there's going to be a school next year. And now there's not, just like that."

The private school, located in Rancho Mirage, was going through financial difficulties in recent months. In May, we reported on those struggles and a parent-led fundraiser that raised several hundred thousand dollars in pledges to keep the institution afloat. Just days later, the school announced that thanks to a large gift from a donor, they planned to reopen through the following school year.

Then, last Friday, the school reversed course. It confirmed it would not reopen for the 2026-27 school year.

In an email obtained by News Channel 3, school officials outlined a plan to close the school by the end of June.

"This was not a choice made lightly. After months and years working through our challenging circumstances, and exhausting every conceivable avenue for a resolution, the Board has concluded that this step, though painful, is necessary," read an email to staff.

According to the email, the school said the low enrollment of 160 students for the 2026/27 school year created a financial shortfall in excess of $3 million.

Concerned teachers employed by Palm Valley School sent News Channel 3 a statement on Monday in the aftermath of Friday's announcement. The group called out school leadership over inadequate communication that now leaves staff and students in limbo.

As teachers who have dedicated ourselves to the students and families of Palm Valley School, we feel compelled to speak out about the events that have led to the school's closure and the devastating impact this has had on our community.
Throughout this school year, many faculty and staff members experienced a lack of meaningful communication, transparency, and honesty from school leadership and the Board of Trustees. Decisions affecting the future of our school were often communicated late, incompletely, or in ways that left teachers, families, and staff with more questions than answers.
We believe the leadership of Interim Head of School Judith Arnstein, Associate Head of School Peter Koehler, Board Chair Paul Antle, Sarah Dunn, Kevin Doran and the Board of Trustees must be examined and held accountable for the decisions and actions that contributed to this outcome. Time and again, teachers raised concerns, sought clarity, and asked for honest communication about the school's condition and future. Those concerns were not adequately addressed.
The greatest tragedy is the impact on our students and families. Children who loved their school, teachers, classmates, and community are now facing uncertainty and disruption. Families are being forced to make major educational decisions on an accelerated timeline, searching for new schools and attempting to secure placements long after many enrollment deadlines and admissions processes have passed.
Faculty and staff members are facing a similar crisis. Many educators are now unexpectedly seeking employment after the primary hiring season for many schools has already concluded. Dedicated professionals who invested years in this community are left scrambling to find positions and provide stability for their own families.
Our heartbreak is not for ourselves alone. It is for the students who deserved continuity, for the families who placed their trust in the school, and for the community that believed Palm Valley School would continue to serve future generations.
Teachers consistently put students first. We wish the same level of priority had been given to the well-being of the students, families, faculty, and staff whose lives have been profoundly affected by these decisions.
We hope this moment leads to honest reflection, accountability, and transparency so that the experiences of our students, families, and employees are neither overlooked nor forgotten.

Statement from Concerned Palm Valley School Teachers

Eaton and his friends shared an immense level of respect for their teachers and an inseparable bond. He recounted how, when picking up his transcript after hearing the news of the school's closure, many of them joked with him about needing letters of recommendation from students as they searched for new jobs. Despite them trying to make light of the situation, Eaton shared that he was worried about what the future held for the teachers who became like a second family to him.

"It's sad because, you know, they're people, too. They're not just your higher-ups and you have to really feel for them. I feel terrible," he said.

We reached out to the officials in charge of restructuring for comment, whom the school referred us to: a lawyer, a field agent, and its Chief Restructuring Officer. The three did not return our emails, and when we called, we were met with voicemails. The law offices we contacted also said the lawyer in charge of the case was currently not in the country, and that we should reach them via email. As of Monday afternoon, our requests for comment were not returned.

When asked about the next steps for Eaton and his friends, he said he was optimistic about what's next. He shared that despite a rivalry with Xavier Prep, he was expecting to transfer to the school for the next academic year. He's not worried about what's to come academically, but does have some concern over adjusting to a larger classroom environment.

"I don't think I'm going to have a problem academically, but socially it might be a bit of a challenge just because, you know, we're used to like 30 kids in our high school and now I'm going to go into one of 200," he explained. He was worried about how his younger sister would process the change, too.

News Channel 3 we continue pressing the school's leadership for answers, but in the meantime, students, families, and staff know one thing for certain: they will not be returning to Palm Valley School when the calendar turns and summer break ends.