Able to keep internship offer after withdrawing from school and transferring?

A friend of mine has an internship secured in BB IB for this coming summer. Due to a personal emergency, he will be withdrawing from his school (which is a little known, absolute non-target), and taking the rest of the year off. This spring he will apply to schools to start again in the fall, but that means that he will be behind a year (a rising junior again, not a senior). He will likely get into a much better school though due to his near perfect GPA and extracurriculars. 

Will this likely affect his outstanding internship offer? Should he communicate with them in advance about it, or just try to never bring it up? Any advice on handling the situation would be much appreciated.

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