The last few posts here seem very similar to what we saw with ECMC/Zenith and its take over of Corinthian Colleges last year--and it wasn't good. ECMC is a debt collector, and they hired some old cronies in the for-profit industry who were shady to begin with and rehired many of the people who took them into the abyss.
5 replies (most recent on top)
It is truly amazing the lack of business acume most of the posters on this site have..... Real world gonna eat them alive ...
Actually, many commentaries have said that Corinthian's demise was something of a bad outcome in the view of the DOE (don't ask me why, I just read a lot). Thus, Corinthian's dissolution may be the thing that saves EDMC, whether they are worthy of being saved or no. Certainly, the team that leads AUO and Argosy in general have not made the sorts of good decisions that would have let the schools thrive they make money and leave when the millions lessen, but leave behind many damaged campus sites, students and employees. they are not self-aware enough to know that they have done such damage, so probably sleep well at nights.
Kkr is not a school. Its a management company. The have a location downtown. Wakeup everyone. Edmc will be sold in pieces until kkr gets their money back. Auo/bmc will be the first to go.
Not exactly. EDMC is like Corinthian in that bankruptcy is back on the table with the judge's ruling in favor of Marblehead. Per the restructure agreement, all must agree or foreclose. They all haven't agreed. Foreclosure means no financial aid. The DOE backed the ED Credit Mgt Corp. so foreseeably once bankruptcy is forced then what is left gets "sold" to the same company as the Corinthian carcass did.
What you see is a culture of weak leadership that continues to hire less than their strength. These individuals are too far removed from the issues of the student and therefore can not address strategies for effective student support or market recapture. I have been laid off from a previous employer and didn't experience the culture like this employer has created. It is difficult to move a company in any direction with inept leadership that inspire.