Does anyone have any real solid information of what is about to really happen with the remaining open campuses? I know for a fact that they are not going to be paying CBRE (the facilities management company) for the 3 weeks we are on "vacation" to save money. I can't tell if my boss is already in the know and of course legally cannot say anything or if we are about to be bought out with a bankruptcy filing closing down the remaining schools indefinitely. Serious responses please. Those of us who stayed may be ridiculed by those who jumped ship long ago, but those of us who are still here will try to give the best we can to our students. So, a solid response to a valid question from anyone who has any inside information would be great to know what little future we all may hold.
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Heard that they stopped paying rent.
Here it is simple: If ground schools can't wrap their accreditation under Argosy, they will go away. This is from the top. California schools are already there, trying to work on others. But the cat is out of the bag about DCEH's finances and most accreditors aren't having it!
Bankruptcy is on external sites not in house information. Copy and paste the following into a browser or search engine and review the documents at your leisure:
site:www.inforuptcy.com art institute
Ok if your inside info is saying Bankruptcy then they are full of it.
EDMC will probably finally go belly up in ‘19 but not the DCEH schools. Dceh is basically stuck with the financial blackhole know as ai ground campuses (sorry if u work at one of them but you locations lose more $ everyday they are open) the faster they end the debt accumultion at those locations the faster the stable places can grow and the less worried we (non-ai) employees will be.
AiP runs AIonline. The AI ground campuses across the country have always been subservient to Pittsburgh. Hearing their bankruptcy filing has a day after Christmas deadline for claims, while admittedly outside information, doesn’t look like a Happy New Year for any Art Institute
No one’s in “the know” just piecing the puzzle together. According to the Delaware Bankruptcy Court Cases (search for site:www.inforuptcy.com art institute) and go through the chapter 7 filings.
AiP has a deadline for filing claims (govt.): 12/26/2018, with other claims due 10/15/2018,
I don’t see that govt note on other schools filings.
Chapter 7 typically ends in the liquidation of a business with assets distributed among creditors. Chapter 11 & 13 usually end in a reorganization.
Not paying facilities for 3 WEEKS?
Gross
There’s already roaches all over the building
Again, any real inside scoop?
Could be a simple re-org
In Atlanta the competition is doing well. Good bye AiA.
Three weeks not paying facilities management at a culinary school would ruin the food, bring potential health hazards, not to mention the building temperature, maintenance etc even in any college or office building.. I would remove all personal items tomorrow, apply to cash out vacation, and prepare to find the doors padlocked when you returned just like Bightwood College students, faculty and staff did last week. No one is going to buy a bankrupt school. At some time in the future tha Art Institute trademark may have value in the ancillary market but if this post is true, the end is near for the current regime
Buyout from another school is exceedingly unlikely in the subprime college loan crisis. School after school has been shutting down in recent weeks, even some of the very big names, and enrollment is down everywhere due to secular population trends. Who the hell wants to assume a bunch of debt?
If you look at what happened to other recent shutdowns like ECA and ITT, they may be able to get their credits transferred to other institutions if the relevant government agencies can work out a deal with other schools, but they may simply get screwed. There may be loan forgiveness if the school closes, but this is a case by case basis. You need to worry about yourself first. Any backpay may be lost. Any accrued vacation may be lost. It'll just become another unsecured claim, which will probably disappear in bankruptcy.
What if it isn't bankruptcy but a buyout from another school?
If there's a bankruptcy filing, the secured creditors will be paid first, and there might not be anything leftover for things like salaries. Things like benefits, insurance, etc would be wiped out, because these things depend on the existence of the company. Plan your exit NOW.