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