Chronicle of Higher Ed: 2 Companies Will Close Campuses

Career College Central Summary:

  • The Education Management Corporation, a for-profit higher-education company beset by layoffs and debt, will shut down 15 of its Art Institute campuses, the company disclosed on Wednesday.
  • The closures are the latest in a long line of indicators of EDMC’s precarious financial position. As of last summer, the company’s debt payments were outpacing its revenue; EDMC has already conducted several rounds of layoffs and sold its Art Institute of Pittsburgh building. Meanwhile, the company has faced heightened scrutiny from Congress and state regulators.
  • When they take effect, the closures will leave EDMC with 36 active Art Institutes across the country, according to the Pittsburgh Tribune-Review. The soon-to-be-shuttered institutions serve nearly 5,500 students, who will either finish their degrees or transfer during a shutdown phase that could take up to three years.
  • Meantime, the Career Education Corporation, a giant for-profit educator that has seen its share of state scrutiny, announced on Wednesday that it would close all 14 branches of its Sanford-Brown College and Sanford-Brown Institute, which provide career-training programs. The company — which has recently closed another college and put its Le Cordon Bleu culinary colleges on the block — also said that it would seek buyers for its Missouri College and its two Briarcliffe College campuses, and that it had found a buyer for its two-campus Brooks Institute.

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THE CHRONICLE OF HIGHER EDUCATION

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