The fire sale has begun. Corinthian Colleges Inc. disclosed on Monday that it hoped to sell all 12 of its Heald College campuses as part of its agreement with the U.S. Department of Education to "teach out" some of the 107 colleges it owns in the United States and Canada, and sell the rest. It is required to detail its full intentions on Tuesday.
In a filing with the Securities and Exchange Commission on Monday, the financially embattled company said that its Board of Directors approved last week a plan to sell the Heald campuses, which are regionally accredited and considered by many to be Corinthian's most valuable asset. The filing notes that the company "has not yet secured a buyer for all or any subset" of the Heald campuses.
Corinthian bought Heald in 2010 for a stated price of $395-million, using cash and debt. At the time, Heald had 12,900 students. Corinthian officials have not disclosed current-enrollment figures on its Heald campuses.
As of May, all Corinthian-owned campuses enrolled more than 75,000 students, the company has reported. The company is still enrolling students, but a dozen U.S. senators have urged the Education Department to halt new enrollments at its colleges. Officials in California, where many of Corinthian’s campuses are located, have said they won’t authorize new veterans’ educational benefits for Corinthian students and are seeking to force the company to disclose more about its status to prospective students.