For-profit college Corinthian Colleges is shutting its doors
It is working to find other schools for the roughly 16,000 students affected by the shutdown, the company said in a statement on Sunday.
In a letter to students on Saturday, the company said it was in the process of arranging for students to continue their studies. The company added: "We want you to know that we made every effort to find a qualified buyer to purchase our remaining campuses and keep your school open and several had expressed interest in doing so. Unfortunately, largely as a result of recent state and federal regulatory actions, we were unable to complete a sale, and our only option was to close our schools.
The Santa Ana, California-based company had been subject to multiple federal and state probes into whether it misled investors and students about its finances and job placement rates. Last year, it agreed with the U.S. Department of Education to sell or close down its campuses.
Back in February, Business Insider reported that a group of Corinthian students were refusing to pay back their student loans, writing in a letter to the Department of Education that, "Corinthian's predatory empire pushed hundreds of thousands into a debt trap."
Earlier this month, the U.S. Department of Education fined Corinthian Colleges $30 million for misrepresenting job placement rates to students in it Heald College system. The government determined that Corinthian's Heald College would no longer be allowed to enroll students.
Corinthian sold off more than half of its campuses to non-profit education provider ECMC Group late last year.
It said the campuses that are closing include 13 remaining Everest and WyoTech campuses in California, as well as Heald College.
Corinthian Chief Executive Officer Jack Massimino said "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."
Increased regulation has hurt for-profit education companies such as Corinthian, Apollo Education Group Inc and Strayer Education Inc, which have struggled to attract students since a 2010 government crackdown revealed high student debt loads, low graduation rates and poor employability of graduates.
In the last year, shares of Corinthian fell more than 98%, with shares closing just below $0.02 per share on Friday.
Back in 2004, the stock traded as high as $60 per share.
Here's the stunning chart:
(Reuters reporting by Michael Erman in New York; Editing by Jeffrey Benkoe)
- Richest entrepreneurs under 40 named in the IIFL Wealth Hurun list became more richer by 12% in last one year
- Time taken to deliver items & returns are the key pain points for e-comm consumers
- DGCI allows Serum Institute to export malaria vaccine to UK
- Upcoming cars launching in India in October 2022
- Gurgaon-based Indifi disbursed ₹2,800 crore worth of loans to small business owners
- Tata Tiago Electric Car
- HCL Tech
- World Heart Day 2022
- Apple Tablets in Amazon Sale
- Reliance Retail
- Akash Ambani
- Amazon festival Sale
- Vinod Shantilal Adani
- Amazon Festival Sale
- Accenture earnings forecast
- India's Richest People
- Best 5G Smartphone
- Upcoming Smartphone in 2022
- Top 10 Colleges in India
- Top 10 Airlines in World