Thread regarding DeVry Inc. layoffs

Breckinridge ha ha --don't fool yourself.

I would expect DV's demise to actually help ATGE which goes back to the question of why ATGE is keeping DV alive. I don't understand it. DV can't possibly be very profitable in the state it's in. So few students and so much wasted money.

unlike ITT going bust ATGE would probably survive in some shape or form. DV's demise won't bring down ATGE. i think, the ceo and cfo decisions taken at ATGE are to minimize atge's exposure in this slow-mo liquidation of dv. the way they are gung ho on building new chamberlain campuses - it seems that they think they could survive and thrive post-DV. plus they got stuff to show off in their "International" brands like the ones they bought in Brazil.

@PyCBgu6-iii, at this point, Adtalem could change directions, but workers do not see it going favorably. Firing profs that have the most experience and increasing class size only dilutes the product.

The (razor slim) profits now are at Chamberlain, and by keeping the losers, so to speak, ATGE is putting the whole enterprise in jeopardy. At the same time, waiting until the last minute on DeVry closings, the company is hurting their goodwill.

I compare Adtalem to ITT Tech rather than Corinthian Colleges or EDMC because ATGE does have a viable school, and that's Chamberlain. The DeVry brand may not be history yet, but it's heading in the direction of failure. Maybe some DeVry campuses could survive, but it will need to be a select few. What campuses do you think should survive?

@PyCBgu6-ecp

last post was in your response.

gtq:

yea perhaps.

i think Camden's thinking on DV following ITT path is a bit too simplistic since the financial structure behind DV due to ATGE is very different than the one trick pony that ITT was. So i think ATGE might be able to drag DV along for a long while with their gimmicks that they been doing for last few years like "rightsizing" and "home-office cost realignments" etc.

@PyCBgu6-gtq, DeVry has been flying below the radar since the $90 settlement. But if they decide to close lots of campuses with little advanced warning, they will catch some flak. And when that happens, the investors may decide to bail.

I am interested to know how the current campus teach outs have not made the news. In a previous post I heard Anaheim, Bakersfield, Cherry Hill, Colorado Springs, Dayton, Oakland, Oklahoma City, and Palmdale.

Camden:

JB?

Devry did that type of teach out in 2015 and guess what? they did that right in the middle of HLC reaccreditation visits. and they got their accreditation without a hitch.

So ATGE thinks it will be ok if they only give students an 8-10 month advance warning? Is JB ok with that?

Devry doesn't believe in teach-outs lasting years. Most of the locations were on eight to ten months long teach-out plans during Devry's 2015 campus closures. Devry top management forced local campus admins to go out and find local colleges to take their students as part of admin Teach Out duties back then. Devry would probably apply that "knowledge" if it came to that.

Camden: the cordon bleu guy is running DV now. Thought you had spotted that already.

ITT Tech had some viable Breckinridge nursing schools, but the ITT Tech brand took them all the way down. The demise happened rather quickly, but the Breckinridge schools were degrading in the process--and they all closed when ITT Tech closed.

If I were at Chamberlain, I'd be looking for these changes for the worse.

Also, what happens if BlackRock, Vanguard, Wells Fargo or State Street bails?

BlackRock has already been removing some of their interest.

Although they have a small percentage of the stock, the big boy presence is keeping other shareholders in. Watch and see what happens to these investors.

JP Morgan Chase, Prudential, and Morgan Stanley are already headed toward the door.

http://www.nasdaq.com/symbol/atge/institutional-holdings/decreased

For years I have been saying that we need to start working on teach-out plans while we still have the resources to do it. I have no clue why we have not done this. Some locations have but many more locations need to, possibly all of them. Some of us are worried that by the time DVU goes under completely, there will be no money left for teach-outs or severance packages. We who keep getting passed over for layoff are becoming increasingly concerned that we won't get ours. We know that a layoff with severance is the best possible outcome for any of us.

Supposedly DVU still has over 20,000 students nationwide, though I cannot personally confirm this. If it is true, then perhaps management thinks we can accumulate a little more money before we can't keep going anymore. I wish I knew what the real long-term plan was because it obviously isn't being communicated to us.