Why didn't EDMC fold before ITT Tech? My thought is that EDMC had more political connections and that KKR still needed more time to strip out all the assets. Any ideas from the insiders?
https://www.linkedin.com/pulse/edmc-keeps-art-institutes-students-staff-dark-dahn-shaulis?trk=mp-author-card
Clearly some don't understand. South is accredited by SACS. They are currently on warning due to financial instability. SACS could take action on the warning in December. Therefore, the rational thing to do is seek investors before SACS can (theoretically) lower the boom. Since South is profitable, it would stand to reason that a deal will be struck.
The problem with EDMC schools is that greedy financial overlords took out a huge (huge is an understatement) loan to buy back stock, etc., to pump up company value (and make millions for the individuals at the top and Goldman). That is why U of Phoenix, Capella, and similar for-profits are not in the mess that EDMC is in, although most have similar enrollment practices, same accusations of deceit and fraud, program types, and stuff.
In short, the management at EDMC were incredibly bad and greedy managers. Forbes did an article where they said the EDMC debt problem is the dumbest thing ever to come from two financial powerhouses (Goldman that wanted the loans and KKR that made them)
"ITT had a different set of problems than what EDMC has..."
They both applied the same exact fraudulent enrollment template on students who had no business attending college and ultimately resulted in losing accreditation and closing campuses. No difference there!
The accreditation situation has nothing to do with EDMC.
It has to do with ACICS.
Only 5 Ai schools have ACICS accreditation; soon they will have different accreditation and continue.
EDMC will most likely still fail sometime next year, but not because of ACICS.
The Ai campuses will be rolling out a new curriculum, most likely SP17.
Meanwhile, it's business as usual; cut cost.
ITT had a different set of problems than what EDMC has...
South is a joke. Mr. South has already separated. It is not to be disclosed. This comes from someone at AI Dallas.
Edmc will almost certainly not exist in 6 months. The profitable parts (South) will be sold. Then you will have a different company to hate. If you had any business acumen, you would have figured this out yourself. Source: common sense and accreditation situation
Everyone in the industry knows about EDMC. What I would give to be a fly on the wall when one of these losers attempts to explain EDMC on their resume during interviews!
There are students who still attend some of these fake schools and they want to squeeze every last dime they can out of them, so that they have capital for their next Ponze scheme!
I've never been happier to see something die than EDMC. It's like watching the devil on life support with the fear he's going to rise up again. Someone put a stake through their heart and end this threat once and for all!
I'm most disappointed with the government for not taking the final blow. I understand letting them live stayed off students from defaulting on debt, but this was a moral imperative. Instead it's become like John Cleese in the Life of Brian after he got all his limbs cut off, taunting us to fight.
I think you're right. On the flip side; EDMC is bigger and needs more time to close everything down. They're doing it. BMC is being shut down. Five more AI's will soon be closing. It's happening. They're shutting it all down. Just be patient.