Higher Ed in Distress: Is There a Restructuring Solution?
October 1, 2015
Joseph H. Huston, Jr.
Journal of Corporate Renewal
The financial distress being experienced by many, if not most, colleges and universities – large and small, public and private, for-profit and not-for-profit – was thrust into the public eye by the May 2015 Chapter 11
filing of Corinthian Colleges, which had 107 campuses, employed over 10,000 people, and claimed over 74,000 enrolled students in the United States and Canada. What was not so clear was that, although exacerbated by recent demographic and financial conditions and “gainful employment” regulations adopted by the U.S. Department of Education to protect students, this was not a new phenomenon.