The for-profit education business has been under fire for several years as investigations covering a broad range of their business practices have been launched by government attorneys generals, educational accreditation institutions and securities regulators.
As a result, several for-profit institutions began initiating restructuring activities as far back as year 2011, and many continue to re-engineer and restructure their business activities. Some have warned that the latest facility closures may not be the last.
Share with Your Followers on Twitter Corinthian Closes the Books
For-profit Corinthian College announced this week that it has ceased substantially all operations and discontinued instruction at its remaining 28 campuses. The company announced it is working with other schools to provide continuing educational opportunities for its 16,000 students.
The closures include Corinthian's 13 remaining Everest and WyoTech campuses in California, Everest College Phoenix and Everest Online Tempe in Arizona, the Everest Institute in New York, and 150-year-old Heald College, which has 10 locations in California, one in Hawaii and one in Oregon.
Since signing an operating agreement with the U.S. Department of Education in July 2014, Corinthian said it has focused on completing the orderly sale or wind-down of all of its schools. Last November, it agreed to sell 56 Everest and WyoTech campuses to Zenith Education Group, Inc., a subsidiary of ECMC Group. As part of that sale, Zenith also agreed to conclude the teach-out process at 12 additional schools that were previously announced to be closed.
Corinthian had been in advanced talks with several parties in an attempt to sell the 150-year-old Heald College and to arrange for teach-out partners to allow its Everest College and WyoTech students in California to continue their education. However, the company said these efforts were unsuccessful largely as a result of federal and state regulators seeking to impose financial penalties and conditions on buyers and teach-out partners.
DeVry Education Group
As Corinthian opted to wind down its operations, DeVry University announced the next phase of its restructuring. The company identified 14 locations for closures and conversion to online learning, including facilities located in Detroit, Houston, Indianapolis, Memphis, Milwaukee, Minneapolis, Pittsburgh, Portland (OR), Seattle, St. Louis and Tampa.
The university said the closures resulted from its decision to invest in its strongest markets and programs.
For its March session at DeVry University, new undergraduate enrollments decreased 17.2% to 4,156 compared to 5,018 the previous year. Total undergraduate students decreased 15% to 36,188 versus 42,583 for the session a year ago.
At the graduate level, including Keller Graduate School of Management, total coursetakers in the March session decreased 9.5% to 14,651 versus 16,192 for the same session a year ago.
In previous cost realignments in the last year, DeVry management has closed 15 campus locations and completed 13 campus size reductions.
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