Dive Brief:
- For-profit college operator Education Training Corp., owner of Anthem Education, has filed for bankruptcy protection from creditors, creating uncertainty about which of its campuses, if any, will survive.
- Just before filing to reorganize financially under Chapter 11 of federal bankruptcy laws, the company sold 14 of its 41 campuses to International Education Corp.
- Anthem is seeking permission from the U.S. Department of Education to sell another 14 campuses to International Education. If the sale isn’t approved, nine of those campuses will close, according to Inside Higher Ed.
Dive Insight:
Federal student aid accounts for nearly 90% of Anthem’s revenues, and once bankruptcy was declared, the company’s campuses were ineligible for the federal funding. Inside Higher Ed reports that the company apparently wants to keep the 28 sold and planned-to-be-sold International Education campuses running. Anthem has shut down colleges in Minnesota and New Jersey and threatened to close some campuses in California and Nevada. Education Training, which operates under the Anthem and Florida Career College names, claims it has assets of less than $50,000 and debts of $10 million to $50 million.