Dive Brief:
- Corinthian Colleges Inc. plans to sell its Heald schools, rather than wind them down, but it does not yet have a buyer or know whether the 12 campuses will be sold as a group.
- Today is Corinthian’s deadline to submit lists of schools that it will try to sell and those that it will shut down to the U.S. Department of Education.
- The Wall Street Journal reports that the Heald schools are valuable partly because of Heald's accreditation, which allows students to transfer credits more easily when pursuing a bachelor's degree.
Dive Insight:
A Wells Fargo Securities analysis from June 23 pegs the enterprise value of Heald at $60-69 million. Heald’s campuses are mostly in the Western U.S. Corinthian announced last week that it would sell 107 schools in six months or wind them down. That announcement was part of a deal negotiated with the Department of Education to release $16 million in federal funds the department was withholding. More money will be released if Corinthian meets today’s deadline for submitting its plan for the fate of the schools. Overall, Corinthian has 12,000 employees and 72,000 students, and receives about $1.4 billion per year from federal financial aid.