SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


                                 March 30, 2001
               (Date of Report (Date of earliest event reported))


                            THE TESSERACT GROUP, INC.
             (Exact name of registrant as specified in its charter)


         Minnesota                      1-11111                  41-1581297
(State or Other Jurisdiction    (Commission File Number)        (IRS Employer
     of Incorporation)                                       Identification No.)


        4515 E. Muirwood Drive
           Phoenix, Arizona                                         85048
(Address of Principal Executive Offices)                          (Zip Code)


                                 (480) 940-6300
               (Registrant's telephone number, including area code)



          (Former Name or Former Address, if Changed Since Last Report)

ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.

     SALE OF EAGAN TESSERACT SCHOOL

     On March 30, 2001, The TesseracT Group, Inc. ("we" or "us") sold certain of
our assets to TesseracT of Eagan, Inc., a Minnesota corporation ("TEI"). We made
this sale  pursuant to the terms of a Purchase and Sale  Agreement  for personal
property, dated March 28, 2001, by and between us and TEI.

     In this  transaction,  we sold certain of our assets  including  equipment,
real property and goodwill  related to our property  commonly known as the Eagan
TesseracT  School.  In  consideration  for the sale of these  assets we received
$30,000 for the personal  property  and  goodwill.  In addition,  we paid to TEI
$100,000 in consideration for TEI's assumption of certain liabilities  connected
with the operations of the Eagan TesseracT School.

ITEM 5. OTHER EVENTS.

     As previously  disclosed,  the TesseracT  Group,  Inc. and its wholly owned
subsidiary,   Sunrise   Educational   Services,   Inc.   ("Sunrise")  filed  for
reorganization  under Chapter 11 of the United States Bankruptcy Code on October
6, 2000. The registrant has not prepared  audited or other financial  statements
since the date of filing of its bankruptcy petition.  Therefore,  the registrant
does not include pro forma  financial  information  reflecting the effect of the
asset disposition described herein.

     Monthly Operating Reports for February 2001 as filed with the United States
Bankruptcy Court for the District of Arizona for The TesseracT  Group,  Inc. and
Sunrise are attached hereto as Exhibits 99.1 and 99.2.

ITEM 7. FINANCIAL STATEMENTS; EXHIBITS.

     (b) Pro Forma Financial Information

         See Item 5 herein.

     (c) Exhibits

         EXHIBIT NO.
         -----------

            10.1    Purchase and Sale Agreement by and between The TesseracT
                    Group, Inc. and TesseracT of Eagan, Inc., dated March 28,
                    2001.

            99.1    Monthly Operating Report of The TesseracT Group, Inc. for
                    February 2001.

            99.2    Monthly Operating Report of Sunrise for February 2001.

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                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.

                                         THE TESSERACT GROUP, INC.


Dated: April 9, 2001                     By: /s/ Douglass E. Snell
                                            ---------------------------------
                                            Douglass E. Snell
                                            Controller

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