MAINT STREET: Corinthian Colleges’ Canadian Subsidiary Files for Bankruptcy and Shuts Down its Schools
Career College Central Summary:
In a surprise move, Everest Colleges of Canada filed for bankruptcy protection late last Friday after its regulator, the Ontario Ministry of Training, Colleges and Universities, yanked its license to operate under the provincial Private Career Colleges Act.
Corinthian Colleges Inc., the Santa Ana, Calif.-based for profit which owns Everest Colleges’ Canadian subsidiary, was taken aback by the Ontario regulator's move. The subsidiary north of the border had been immune from the turmoil at the parent company last year, which led to the sell-off of 56 of its 108 stateside campuses to ECMC Group, a Minnesota-based student loan debt collector.
Recently, the Canadian schools had come under increased regulatory scrutiny, yet the exact reasons for the shutdown were not clear. A spokesperson at the Ontario regulator could not be reached for comment. The 14 Everest campuses, which are all located in Ontario, are now closed.
“We are extremely disappointed that the Ministry has taken these abrupt actions," said Jack Massimino, CEO of Corinthian. "Our Canadian subsidiary had been working with the Ministry for an extended period of time with the goal of achieving a satisfactory outcome for students, employees and other stakeholders in Canada.”
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