Sure is working great here in Calif.:
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It had been a month since one of the nation's largest charter school operators collapsed, leaving 6,000 students with no school to attend this fall. The businessman who used $100 million in state financing to build an empire of 60 mostly storefront schools had simply abandoned his headquarters as bankruptcy loomed, refusing to take phone calls. That left Mr. Larson, a school superintendent whose district licensed dozens of the schools, to clean up the mess.
"Hysterical parents are calling us, swearing and shouting," Mr. Larson said in an interview in Oro Grande last week. "People are walking off with assets all over the state. We're absolutely sinking."
The disintegration of the California Charter Academy, the largest chain of publicly financed but privately run charter schools to slide into insolvency, offers a sobering picture of what can follow. Thousands of parents were forced into a last-minute search for alternate schools, and some are still looking; many teachers remain jobless; and students' academic records are at risk in abandoned school sites across California.
"Until the Charter Academy went into its tailspin, few people predicted that these crashes could be so bloody, but this has been a catastrophe for many people," said Bruce Fuller, a professor of education at the University of California, Berkeley. "The critics of market-oriented reforms warned of risks with the philosophy of let-the-buyer-beware, but in this case, buyers were just totally hung out to dry."
http://www.nytimes.com/2004/09/17/education/17charter.html