Education staffing firm Professional Educational Services Group LLC abruptly ceased operations this week. The Detroit-based company filed a WARN Act Notice with the state of Michigan Monday afternoon, reporting that all PESG employees were terminated effective Oct. 22.

The Detroit Free Press reported Michigan school districts were scrambling to find substitute teachers after the shutdown.

Professional Educational Services Group was part of PESG Family of Companies, whose founders also own separate companies related to education staffing operating in Alabama, Florida, Indiana and Tennessee. The closure affects only operations in Michigan.

PESG permanently closed its headquarters in Caledonia, Mich., and its location in Burton, Mich., affecting 18 full-time employees.

The company estimates the closure immediately affects between 1,500 and 2,000 part-time employees who had currently been on assignment as substitute teachers in Michigan. PESG had as many as 15,000 individuals who had registered with the firm and were available to work at approximately 110 to 120 school districts.

PESG’s outside counsel, Ian Northon, told SIA that PESG shut down as a last resort. “This was a faltering company, and this was a difficult decision,” Northon said.

He cited the delivery model as one cause of its financial problems, noting a two-week lag between when services are provided and when fees get paid, with some accounts receivables reaching “as high as six figures.” PESG has also been in negotiations with potential buyers over the last several months and even years, Northon said, but was not able to close a deal. Most recently, it was working with an unnamed competitor seeking to move into the Michigan market, but that fell through last weekend.

PESG sent a letter to substitute teachers Monday afternoon, which was subsequently published by ClickonDetroit.com, advising them to contact their local school districts to get work directly.