In the latest sign of the for-profit college giant's deteriorating finances, Corinthian Colleges has announced plans to sell its Heald College campuses.
California Attorney General Kamala Harris sued Corinthian last year for allegedly misleading students about the value of their education. With a parallel federal probe clamping down on Corinthian's revenue flow, the company announced recently that it was on the verge of running out of cash.
Now Corinthian is moving to sell its Heald College campuses, a U.S. Securities and Exchange Commission filing shows. The company's board of directors has approved a plan to sell off the Heald College locations, including 10 in California.
"The Company has not yet secured a buyer for all or any subset of the Heald Schools, but has allocated internal resources to identify potential buyers and evaluate proposals for these campuses," the filing reads. "The Company intends to execute definitive sales agreements with one or more third parties for the sale of the Heald Schools within approximately six months."
As the company's financial condition has spiraled, Harris has applied more pressure. The attorney general filed additional charges against Corinthian last week, accusing the schools of misleading prospective students with false advertising that does not illuminate the education corporation's fiscal struggles.
"It is unacceptable yet not surprising that Corinthian Colleges continues to illegally target vulnerable Californians – including low income individuals, single mothers and veterans returning from combat – by lying about its dire finances and failing to tell prospective students that the schools to which they apply will all be sold or closed," Harris said in a statement last week accompanying the charges.
PHOTO: In this June 30, 2009 file photo, Larry Wostenberg teaches an engine management systems class at Laramie, Wyo campus of WyoTech, one of the schools owned by Corinthian Colleges Inc. AP Photo/Mead Gruver.