Corinthian Announces Cessation of Effectively All Operations
April 26 2015 - 12:00PM
Business Wire
All campuses closed effective Monday, April
27
Corinthian Colleges, Inc. (Nasdaq: COCO) today announced that
the Company has ceased substantially all operations and
discontinued instruction at its remaining 28 ground campuses. The
company is working with other schools to provide continuing
educational opportunities for its approximately 16,000 students.
Corinthian said those efforts depend to a great degree on
cooperation with partnering institutions and regulatory
authorities.
Campuses closed 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—including its 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, the Company has been focused on completing
the orderly sale or wind-down of all of its schools. In November
2014, the Company announced that it had entered into an agreement
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 being closed. That transaction was completed in February
of this year for all but three locations, the Everest College
Phoenix campuses in Phoenix and Mesa, AZ, and Everest Institute in
Rochester, NY. As a result of the sale, nearly forty thousand
students were able to continue their studies and thousands of
employees kept their jobs. Zenith has recently advised Corinthian
that it will not consummate the purchase of Everest College
Phoenix, and the closing conditions have not been satisfied for
Everest Institute Rochester.
In parallel, the Company had been in advanced negotiations with
several parties to both 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. 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.
“We believe that we have attempted to do everything within our
power to provide a quality education and an opportunity for a
better future for our students,” said Jack Massimino, Chief
Executive Officer of Corinthian. “Unfortunately the current
regulatory environment would not allow us to complete a transaction
with several interested parties that would have allowed for a
seamless transition for our students. I would like to thank our
employees for their selfless dedication and commitment to
fulfilling the educational and career goals of all of our
students.”
The Company said that its historic graduation rate and job
placement rates compared favorably with community colleges.
Corinthian also said that approximately 40 percent of its students
previously attended a traditional higher education institution
where their needs had not been met before attending a Corinthian
school.
“Colleges like ours fill an important role in the broader
education system and address a critical need that remains largely
unmet by community colleges and other public sector schools,”
Massimino said. “Overall, our schools did a good job for the
students they served. We made every effort to address regulators’
concerns in good faith. Neither our Board of Directors, our
management, our faculty, nor our students believe these schools
deserved to be forced to close.”
Further information about the company and the closures can be
found on Corinthian’s website, http://www.cci.edu/.
ABOUT CORINTHIAN:
Corinthian was one of the largest post-secondary education
companies in North America. It offered diploma and degree programs
that prepared students for careers in demand or for advancement in
their chosen fields. Program areas included health care, business,
criminal justice, transportation technology and maintenance,
construction trades and information technology.
The Abernathy MacGregor GroupAlan
Maltun213-630-6550am@abmac.comorRosemary
Wilson213-630-6550rdw@abmac.com
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