The school’s parent company, California-based Corinthian Colleges Inc., told staffers Wednesday the closure and layoffs will be effective Feb. 28.
“Today we have difficult news to share with you. Given the significant reduction in our online student population, pending transaction with ECMC Group and on-going cash constraints, CCi can no longer justify keeping the Colorado Springs Service Center open,” the company wrote in a memo to staff. “We are providing this 60-day advance notice.”
A source at the service center, located at 1575 Garden of the Gods Road, said the closure pertains to the planned restructuring of the company’s positions and services.
“They just announced that Feb. 28 is the Lights Out day for the Springs Location,” the source, who was informed during a “town hall” meeting Wednesday, wrote in an email. “All employees are being terminated and positions relocated to Thornton (mostly finance people) and Tampa, FL.”
The announcement came just a few weeks after Corinthian contracted with Zenith Education Group to sell 56 of its Everest and Wyotech campuses and online programs, including Everest University Online and Everest College in Colorado Springs.
Corinthian announced Nov. 20 its contract to sell the schools for $24 million. Zenith is a subsidiary of Minnesota-based ECMC (Educational Credit Management Corp.) Group Inc.
The deal, expected to close in January, comes after an agreement with the U.S. Department of Education to sell or close its schools following months of federal and state investigations into the company’s business practices, notably, the legitimacy of claims related to job placement and enrollment data.
In the several months leading up to the agreement, Corinthian employees were subjected to layoffs, furloughs and general uncertainty about the future of the company and their careers.