A small women-only college in Virginia’s decision to close its doors due to its untenable financial situation has prompted lawsuits attempting to force the college to stay open. The Virginia Attorney General has urged both sides into mediation to resolve the dispute before it enters the court system.

Sweet Briar College is a small liberal-arts college for women. Highly regarded by its alumni, it has suffered from declining attendance, rising costs, and an endowment that suffers from too many restrictions. The school’s board voted to close the school after the current term, with the announcement made in March. They assured current students they would assist them in any way possible to locate spots in alternative schools.

The faculty, who will be without jobs in August, sued over alleged breach of contract. The school board has described the suit as an attempt by the staff to force a larger financial package from the school. The faculty also argues that there is no financial emergency, and that plenty of money remains for the school to assist staff and students.

Sweet Briar is part of a declining tradition of women’s colleges. Undergraduate enrollment has been dropping steadily (from 605 in 2010 to 561 in 2014), and the tuition discounts used to attract students has risen to 57% in recent years.

But the real financial problem is the restricted endowment. Although the college’s endowment overall is $85 million, $65 million of that is restricted to specific projects and cannot be used to fund repairs, improvements, or salaries. The school is in $25 million debt.