For-profit Career Education Corp. will cut 900 jobs, close 23 campuses
- For-profit education company Career Education Corp.--which operates American InterContinental University, Le Cordon Bleu North America and the Sanford-Brown colleges--plans to close 23 campuses and cut 900 jobs as losses and declining enrollments take their toll.
- Career Education expects to post a loss of $140 million to $160 million for 2012 and has been unable to renew its $185 million credit agreement, which expired on October 31.
- Like other for-profits, Career Education's enrollments have been hit hard by new federal regulations, and the company's stock has fallen almost 80% since investigations last year uncovered false placement rates reported by several of its colleges in an attempt to attract students.
From the article:
Career Education Corp (CECO.O) will close 23 campuses and cut 900 jobs amid losses and falling student enrollments that also threaten to affect its financial position. The for-profit education company said its $185 million credit agreement expired on October 31 and it has still not been able to renew it. Career Education said it cannot predict with certainty whether it will be able to obtain a replacement credit agreement due to the expected decline in its operating performance and a weak economic recovery. ...
- Reuters Read More
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