Bryman College Operator Files for Chapter 11

Career College Central Summary:

  • BioHealth College acquired Everest College campuses in San Jose, San Francisco, Hayward and Los Angeles in January 2013 from Corinthian Colleges—a for-profit college operator with more than 100 schools that is now in the process of winding down its own operations—and changed the schools’ names to Bryman. Prior to this, BioHealth operated a for-profit medical-training school in San Jose.
  • Corinthian paid BioHealth $2.3 million in January 2013 to take over these schools, according to filings made with the U.S. Securities and Exchange Commission. The schools had been placed in “discontinued operations” the year prior, Corinthian Chief Financial Officer Bob Owen said in a conference call announcing the sale.
  • In May of this year, local media outlets reported that the Bryman San Jose campus shut down temporarily amid a dispute with its landlord. According to ABC affiliate KGO, BioHealth owed its landlord $80,000, but the two reached an agreement to reopen the school within days.  
  • BioHealth Chief Executive Sam Shirazi founded a company called Computer Training Academy Inc. in 1990, according to BioHealth’s website. He eventually sold that company to Corinthian Colleges in 2000. In 2003, Mr. Shirazi launched BioHealth College, a school that specialized in pharmacy technician and biotechnology technician courses. It had 192 students in 2012, prior to the acquisition of the Bryman campuses.
  • The original BioHealth College now shares a campus with Bryman San Jose. The four Bryman campuses offer programs including dental assistant, massage therapy, medical assistant and medical insurance billing and coding.
  • Tuition for these diploma programs ranged from $16,000 to $18,000 in 2013. During the 2011-2012 school year, which is the last time this data was provided, students used a median of $9,450 in federal student loan money to pay tuition. Current enrollment numbers weren’t immediately available. According to court filings, BioHealth has fewer than $50,000 in assets and between $1 million and $10 million in liabilities.  

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THE WALL STREET JOURNAL

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