Career Education cutting 900 jobs, closing 23 campuses
SUN-TIMES STAFF November 8, 2012 5:00PM
Updated: December 10, 2012 6:29AM
Career Education Corp., owner of for-profit cooking school Le Cordon Bleu and health-care college Sanford-Brown, said Thursday it will cut 900 jobs and close 23 campuses.
It made the announcement as it reported a $33.1 million net loss for the third quarter.
The Schaumburg-based company said enrollment is down 22 percent from a year ago, and new student enrollment is down 23 percent.
The 50-cent a share loss, on revenue of $332.8 million compared to a net profit of $10.6 million, or 14 cents a share, on $428.4 million revenue in third-quarter 2011.
The company said its $185 million credit line expired Oct. 31, but that it is in talks with banks to continue or replace it.
Career Education said the campuses it is shuttering will remain open for now to allow students to complete courses, but most will be closed no later than the first quarter of 2014. It currently has 90 campuses.
A U.S. Senate committee report last summer criticized for-profit schools for focusing on their own profits above their students’ job-readiness and for burdening students with loan debt at taxpayers’ expense.
The scrutiny has hurt for-profit college enrollment.