Thread regarding Dream Center Education Holdings, LLC (DCEH) layoffs

From DCEH filing

“DCEH’s financial woes have resulted in it defaulting on its financial commitments across the country, including sums due a number of landlords, who have started eviction proceedings. The impending cascade of creditor litigation will result in the loss of the schools’ accreditations and their ability to receive Title IV funding. Since DCEH and its schools (collectively the “Universities”) rely almost exclusively on tuition payments, and since a majority of those payments come through federal student loans, the loss of the Title IV funding will force the Universities to close without delay. Closing the schools immediately will destroy the enterprise value, leaving little money for DMS and DCEH’s other creditors.”

Update is at end of post:https://www.republicreport.org/2019/brent-richardson-resigns-as-dceh-ceo/

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| 1681 views | | 5 replies (last January 19, 2019) | Reply
Post ID: @OP+XcChuXQ

5 replies (most recent on top)

So the post says here were true about pending evictions and bills not paid

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Post ID: @wun+XcChuXQ

“Best practices” included firing all full time faculty? I call BS

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Post ID: @moy+XcChuXQ

Within 60 days of the final closing and after completing the opening balance sheet audits DCEH

discovered that the actual revenues fell far short of the projections provided by EDMC, in an

amount in the tens of millions of dollars, while overhead fixed costs were significantly in excess

of the EDMC’s representations. DCEH’s efforts to instill best practices organization wide and

reduce enormous corporate inefficiencies clearly would not be enough to balance what was now

projected to be a substantial operating deficit. DCEH determined that the decline in enrollment

and revenue was the result of minimal new program development, vastly reduced marketing

efforts prior to sale by EDMC, a gap between curricula and employable skills for a number of

programs, and the lack of capital investment in facilities and technology. Those issues

exacerbated a disengagement from the local communities. The Universities’ high fixed expenses,

principally driven by large leased facilities, caused additional stress by limiting the

organizations’ ability to reduce the cost base in line with revenue. Absent some sort of cure,

DCEH forecasted an inability to meet all of its financial obligations by December of 2018.

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Post ID: @fyc+XcChuXQ

ydq thanks -- explains a lot

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Post ID: @ebj+XcChuXQ

Link to actual filing https://www.republicreport.org/wp-content/uploads/2019/01/DC-Dk7-Resp.pdf

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Post ID: @ydq+XcChuXQ

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