Thread regarding Art Institutes layoffs

EPF says AI schools are not for sale.

"EPF is proud to have played a role in supporting South and Ai during their difficult transition away from DCEH. We are an independent, non-profit foundation and do not stand to gain anything from our ownership of South or Ai. Nor do any other third parties we are affiliated with. No members of the Board of EPF serve on the Boards of Trustees of these institutions and therefore do not manage them. EPF does not have any affiliation with any other person or institution and has not since the end of 2018. The financials that we report to various governing bodies, which are public information, are simply a consolidation of the of the Schools’ financials themselves. EPF is a holding entity, and the reporting of the individual institutions rolls up to us. EPF itself holds no other assets except small cash balances to cover expenses. None of EPF’s board members receive any compensation for their roles, and EPF does not pay any third-parties other than for general corporate and administrative purposes (e.g. accountants, auditors, etc.). No money flows to EPF from the Schools’ operations. As the owner of South, EPF was required to act as a guarantor of their debt and did so in the ordinary course of its business and fully expects South to be debt free by the end of 2024."

(1) In 2019, Education Principle Foundation (EPF) received $69M in assets along with $36M in liabilities as part of the Dream Center-ED deal. – Not Correct.

(2) In 2021, In Lacon v. EPF, South University was accused of using a predatory lead generator and robocalls to recruit and enroll students, using Yodel Technologies, JobsFlag, Double Positive Marketing, and Telesolutions/Graspy Media. The allegations stemmed from business activities in 2020. – This Claim was DISMISSED.

(3) In 2020, South University took on a $50M Main Street Loan debt and promptly paid EPF $44M to pay off their debt to EPF. – Not Correct. The entirety of the proceeds of The Main Street Loan were used to refinance the debt of South.

(4) Both South University and the Art Institute continued to use Studio Enterprise for Marketing, Compliance, and IT. For South University, this service amounts to about $22M per year. Not Correct.

(5) Studio is owned by Colbeck Capital, BN, and other unnamed investors. We do not know the ownership structure of Studio.

(6) EPF's net position changed from $33M to $25M from 2019 to January 2021. In January 2021, EPF's net position was then $25M--with no liabilities. EPF’s financial position can, insofar as relevant, be derived from the filings on public record. However, these numbers aren't a current reflection nor an individual reflection of how each school is performing, given that everything is presented on a consolidated basis.

(7) In 2021, South University made approximately $5M in profit as they cut labor costs by $7M. Not Correct.

(8) South University Chancellor SY has said on record that South will be able to make the loan payments, including a $36M payment in December 2025. South University also has a $7.5M Main Street loan payment to make in December 2023 and another in December 2024. These loans cannot be forgiven. Not Correct. However, it is correct that South will be able to pay off the MSL in full.

(9) It appears EPF has been trying to sell South University and the Art Institutes. Studio Enterprise has not denied that they have been part of that process. Not Correct.

(10) BN at Studio Enterprise says on the record that Studio has never made a profit with servicing either South University or the Art Institutes. Both SY and The Art Institutes have confirmed the validity of that statement.

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