Does anybody have any doubts that Zenith is in the bring of closing?
13 replies (most recent on top)
It's obvious where it's heading, there has been no investment just presidents talking to cover their ass and they contradict every speech with another story to cover the last speech. Many people are over paid and really have no ability past a conversation. There are employees that are covered with paperwork and that's easy to alter. Good luck
Already been RIF ed
Yes 567, and maybe before year 7, with the approval of doe. And yes, I am very familiar with the situation of the tx schools, as well as in the other states. Think 250-300 students and about 30-35 staff per campus; put this to about 35 schools, and that is the plan.
556: Year seven of this mess? For your information the Texas schools will be first ones to go since they are the most fraudulent of the Zenith crap.
I think quite a few people will be surprised, when zeg goes past next year. First, ecmc purchase of cci was underwritten by none other than the government. You can speculate all you want, but that is a fact. Second, there will be around 35 schools left after next year. Next, there will be reductions in programs and staff, until zeg can be more easily managed and profitable. At some point, once everything is stable and managable, they will rebuild outward. Finally, in Year 7 of the deal, ecmc will be allowed to distribute and collect from the student loans directly and the government is off the hook somewhat. But be assured that ecmc never was on the hook financially, so their in no financial risk; there job is to straighten the "joint" up and make it a viable educational option. Also, the reasons why schools in states such as ca and il were discarded entirely, was due to those states progressive state laws. For example, fl and tx are being trimmed, but will stay open and then revamped. Good luck
Ain't no doubt about it.
Needs to go ASAP
Insider: You have been correct thus far. I hope you are correct about the bankruptcy part. Zenith is such a bad cancer in our society that needs to ASAP.
554: I think you are correct. Your timing is a little off. I don't see them going pass July 2016.
Zenith will start teaching out schools next quarter. In December major consolidation and closings start happening with only 35 campuses remain after the next reorganization. In April 2016 will be another reorganization with more programs getting the axe. In June the last reorganization takes place and by December of 2016 the party's over. Last one out please turn off the lights.
If the reports are true that Zenith has burned through 140 million of the 200 million ECMC invested in Zenith in just 7 months, it won't be long. Hawn estimated Zenith would lose 200 million in two years, but that now looks like it will lose the entire 200 million in the first year. I suspect when the money runs out the doors close and ECMC folds the Zenith circus tents.
I suspect that the DOE will do what ever it can behind the scenes to keep Zenith afloat long enough to reduce the number of students who will have loan forgiveness claims to a manageable/minimal number. Any other result will open DOE to heightened scrutiny for the role it played in allowing CCI and other career colleges to,run such corrupt operations for so long. That said, enrollment is declining at such a rapid rate that Zenith may not be sustainable for much longer and ECMC may decide to cut its losses and leave DOE (and taxpayers) holding the bag.
OP I assume you meant on the brink of closing. I'm gonna go with the insider on this. He's been pretty accurate with what he posted here and on the ECMC layoff site for the last couple months. Even Hawn in his email stated the probability of more teachouts and closings. I believe they will give it one more last ditch effort for next year and if the enrollment doesn't get better at the 35 schools then Hawn will throw in the towel. Of course the insider might be wrong and the whole thing shuts down the end of this year. Who knows.
More bad news coming in December. Everest teaching out 10 to 12 campuses. EUO drastically down sized. WyoTech Blairsville closing and consolidating with Laramie at end of this year. WyoTech Daytona teaching out. Another major RIF in December with closings and teach outs. Approximately 35 schools to remain open next year. If no major improvement in the remaining schools Zenith will claim bankruptcy sometime in 2016.