Career Education Corp. Will Close 3 Colleges It Has Tried to Sell

June 29, 2007

The Career Education Corporation said on Thursday it would close three of its colleges, including Brooks College, a California institution that has faced accreditation problems and come under scrutiny by the U.S. Department of Education.

The company had been trying to sell Brooks since November, without success. Its president and chief executive, Gary McColllough, said in a news release that it had been unable to find a buyer who understood its value or could “nurture the campuses and promote its growth.”

Career Education said that it would cease enrolling students now, and that the final graduation date for students at the Sunnyvale campus would be in September 2008, and at the Long Beach campus in March 2009. The Long Beach campus now has 357 students; the Sunnyvale campus has 167.

The company said it also planned to close a Pittsburgh branch of its International Academy of Design and Technology, which enrolls 310 students. The company said the final graduation there would be in December 2008.

A Career Education spokeswoman said on Friday that negotiations over the 11 other institutions it wants to sell off — Lehigh Valley College, McIntosh College, and nine Gibbs schools — are continuing. —Goldie Blumenstyk