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Now that there may be a criminal investigation it will be next to impossible to sale. I also expect to see enrollments take a giant nose dive, even worse than they have been. Isn't it ironic that the monitor is past U.S. Prosecutor and after a month the current U.S. Prosecutor is investigating CCi for criminal activities. Seems the monitor may have uncovered some dirty deeds. This latest news will be the quick death of CCi, they won't be able to sugar coat this.
You mean to tell me 802 that traditional non-profit schools don't spend a ton of money on front end marketing? NCAA sports is one of the highest grossing advertisement machines that exists, and they don't want for-profits in on that piece of the pie (Grand Canyon University VS The Pac 10). The bigger picture is that not all for-profits spend more money on advertising and student recruitment than they do on education. If the model is done correctly, the students will do a large share of the marketing for you and it is then difficult to consider it predatory. The sustainable model is minimal growth (Positive P&L), excellent student outcomes (Accreditation), and fair priced programs (Gainful Employment). This in no way excuses the big for-profit offenders, but the entire for-profit/non-profit argument is smoke and mirrors...if schools weren't making money, they wouldn't exist.
891, most for profit schools spend more moola on front end recruiting than student education. Who wins with a business model like that?
The schools that are labeled "for-profit" that are doing it right, really aren't that scared. Manage the business correctly, do the right thing for the student every time, don't get too big for your own good, and stay away from being publically traded...the model can be a win/win. The limited value that is left will be picked up by one of the smaller players in the game and rebranded. It's just a waiting game!
I think everything will end up closing. I had also heard that we had to pay to get rid of those campuses. You're not allowed to just leave students high & dry, teach-outs are expensive, and nobody wants what CCi is selling. Outsiders are spooked by the recent crackdowns by ED and the states, and competitors have been seeing sharply dropping enrollments. They don't want more schools or employees. They are already consolidating what they have and laying folks off.
Not sure CCi has the liquidity to stay afloat until sales go through. Is there a possibility everything will end up closing?
Why is anyone surprised? Bankruptcy, sale, teach out or close. It's the end of cci. It just is.
How awesome is it to see your company's name on a blog called "Daily Bankruptcy Review"? Isn't the world of business funny? To sell the campuses, the company will have to raise more money. Aren't they selling because they can't raise money in the first place? Sounds eerily reminiscent of the company that bought several campuses from Corinthian a few years ago. Corinthian PAID the buyers 2.3 million dollars and they buyers still went bankrupt in less than two years.
How awesome is it to see your company's name on a blog called "Daily Bankruptcy Review"? Isn't the world of business funny? To sell the campuses, the company will have to raise more money. Aren't they selling because they can't raise money in the first place? Sounds eerily reminiscent of the company that bought several campuses from Corinthian a few years ago. Corinthian PAID the buyers 2.3 million dollars and they buyers still went bankrupt in less than two years.