Anthem Bows Out

Career College Central Summary:

  • After years of enrollment losses, Anthem Education, a for-profit chain of colleges and career institutes, filed for bankruptcy Monday.
  • The company has abruptly shut down a number of its campuses, leaving state agencies struggling to funnel displaced students into other institutions.
  • Nine more campuses may close today, Anthem officials said. Anthem had 41 campuses prior to declaring bankruptcy, according to its bankruptcy petition.
  • Before it filed for bankruptcy the company sold 14 campuses to International Education Corporation, said an official involved in the acquisition. Anthem is in the process of selling an additional 14 campuses to IEC, but requires federal approval to do so.
  • Unless the U.S. Department of Education approves the transaction by today, nine of those 14 campuses will close, Anthem officials said.
  • The Education Department, however, has not received an application to approve, a department spokeswoman said around 5:30 p.m. Thursday.
  • At least one company is in talks with the department about acquiring former Anthem locations. But nothing beyond the pre-bankruptcy sale of 14 campuses has been formalized.
  • And at the moment the company declared bankruptcy, all Anthem institutions became ineligible for federal student aid — which accounts for nearly 90 percent of Anthem’s revenues, according to the bankruptcy filing.
  • Anthem hopes to keep 28 campuses up and running, according to its bankruptcy petition.
  • Those 28 campuses are presumably the ones IEC is acquiring, although multiple Anthem spokespeople declined to confirm this.
  • If nine further campuses close, just 19 of 41 Anthem campuses will have survived the bankruptcy filing.

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