Thread regarding Education Management Corporation layoffs

Leasehold improvements are only assets to the extend that you can depreciate them. I.e. You can't take it with you when your lease expires. Furniture on the other hand is indeed an asset but is practically worthless on the resale market due to normal wear and tear and the cost to remove and transport.

1st hand real world experiencec with this. Word

150986- did you ever bother to go through any of the financial statements when they were available? I thought not. Repeat,...EDMC does NOT OWN most of the real estate the schools occupy. The locations are leased. The tangible assets the company possesses are the leasehold improvements, equipment and supplies, all negligible in resale value. As far as your name-calling, well, you just reinforce the dismal opinion that most of the rational world now holds in regard to this despicable industry.

1. Well, it was worth a try I guess.

Anonymous149723 They own 89 Campuses, they have only sold one, ever--you are talking out of your ass. I know this will floor you--did you know that debt has commercial value?? No you didn't. Why? Because your are a stupid lazy worthless EDMC lackey whop talks without knowing what the f... it is saying. Sound like the entire company, it is not--the executive suite is smart enough to keep your ass tethered to that desk, with no future in or out of the company, while the rest of us are doing our earn baby earn thing.

I thought you asked for "educated" responses. Clearly many here are not. The reality of the situation is this: The next layoff will be SOON. Most likely in late September or early October, if history repeats itself. Although this is just an educated guess based on historical data and their current situation. Next, the buy out may happen for other departments, but from what I understand it was a one-time option for faculty. It clearly stated in their paperwork that this was phase 1 of 2. Which again leads me to believe that phase 2 is coming soon, especially if projections of their largest class start of the year in October are extremely low, which they are. Lastly, they won't close anytime soon, unfortunately. It's still years out. This isn't a going to be death by guillotine. It's going to be a slow, methodical slow drip. Piece by piece, school by school, department by department. It won't go by way of Corinthian as they were actually better planned for this, believe it or not.

So they really have no tangible assets. As far as "goodwill " is concerned, as the saying goes: that and a nickel will get you on the subway. I am intrigued about the admission requirements at Ai, though.

EDMC doesn't actually own most of the buildings it occupies. These are leases. About the only asset they have is goodwill (The value of the company brand,) and some cash on hand that would be gone in a couple of months should the Dept of Ed shut off the Title IV pipeline.

@ hotargosy atl. Just another angle on this. Stupid EDMC grew so big so relatively fast that they posess far flung big box buildings at least in Florida on mostly second rate pieces of real estate. I think at least here, and I would assume in most locales the sitiation is similiar. They didn't expect the gravy train to so precipitously dry up. If my contention is correct, the land with buildings are more of a liability. They are a very sick organization as we know and they will continue to do mischief. The wall street people desire a political solution. That of course will depend on how much they're willing to bleed.

Really? Edmc has enough property to pay off the lawsuits? Why then are nurses being trained with vet supplies and culinary students working with poor quality product and limited equipment?

I's go with 989 answers one and two. There is some political uncertainty at the Federal level that may influence the long term outcome but in the short term three of the present lawsuits and then the new 12 (maybe 11) state investigation outcome will determine not so much if it goes out of business but who and how it is managed. It has sufficient property to survive the lawsuits the question would be will the DOE grow a pair and step in. As far as the enrollment argument goes, it appears that educating the public and warning the public has had little impact--my guess is as long as they can hire gutless liars like we have here in Atlanta Argosy to do "admissions" they can hang in there long enough to continue to buy votes and stay in there. By the way it still owns more jets than several wealthy sultanates and emirates so there is some cash somewhere.

I'm with 051 - I don't think future severance packages will offer as many weeks pay. In the paper work it is outlined as a plan in phases.

430 is correct. To take the severance package, you have to sign a NDA and must keep your mouth shut to get your money. I just can't see though that they will be able to keep up severances much longer with the plummeting enrollments.

051 you're a sucker if you believe that. if they tell someone yeah just wait it out you'll get a buyout next time then no one would ever take it...they give the buyout option to everyone on a CAP and the severance to anyone laid off along with their NDA to keep their mouths shut

Dear friends to be strapped with so much debt with nothing to show for it is the human side of this horrible situation. I know many really good trusting people who have been taken advantage of all because they wanted to improve their chances for employment in tough economic times or even to be the first family member to graduate from college . Even older people who still felt they had something to contribute by reinventing themselves. These people let a lot of folks down. The profit motive where education is involved was and is a cynical approach to accomplish what needs to be done with benevolence because money only cares about itself. It by nature has no conscience. EDMC has an unweildy infastructure developed over time that will collapse under its own weight.

I agree with 989 except I do not see this place lasting into the beginning of 2016. I don't think EDMC will see it. Ed West has taken his millions and left to avoid an episode of American Greed. They have the writing on the wall and you guys are going to walk in to locked doors and lights out and a letter on the door. These people have no shame as we've explained in countless threads. They are probably gathering their million or hundred thousands right now as we speak and putting them in overseas bank accounts. They don't do anything by the book and they for damn sure are't gonna close down properly. Lastly they know they do not have the funds to pay back an 11 billion lawsuit to the GOVERNMENT. The GOV does not play when it comes to their money. With that being said they'll try and screw students one more time by filing bankruptcy like cowards. I am sorry for those of you that have hope but this company is a bunch of shameless scam artist that ruined employee and student lives. Do not expect anything good to happen anymore, they made it this way.

989 is probably the most accurate response, expect to see more upper management, corporate level that is, jump ship soon. I don't consider anyone at OHE management as they won't be able to find other jobs and the only thing they can manage are the new hires that they sleep with. So let's hope for the better good of society that the place closes in spring of 2016. It'll be a nice start to "making America great again."

Because I have an MA, I can give you an "educated response":

1. The date of the next layoff is currently unknown.

2. There may or may not be another buyout.

3. I really do not know if the doors will close.

If the doors do close, that date is currently unknown.

In response to the question you did not ask, but should have: As far as quantum scientists and cosmologists currently understand, time flows in only one direction, so the future is, unfortunately, not ours to see. (Some philosophers disagree; they think it is the greatest blessing of all that we cannot see the future.)

I took the buyout two months ago. Threat or not - it was made clear that the offer was a one off and that there would be future layoffs without the severance package. The way that the severance is written clearly states phase one and phase two. I'd expect (given low enrollment and no upswing) layoffs prior to the fall start. For when it closes - when and not if at this point. The elephant in the room is the 11B lawsuit which was supposed to be negotiated last fall. Even if EDMC does not admit guilt the consequences of that lawsuit are huge and they can't avoid settling it forever. Add in gainful employment, negative press, lower quality, horrible work/study environment... everyone looking for another job... Probably no need to point out that they are guilty of the charges in the lawsuit and they don't meet gainful employment numbers and are really blowing off any notions of keeping accreditation. So yes ... look for another job and students transfer now.

I was referring to Argosy/EDMC offering a buyout to employees like they did two months ago.

What do you think Edmc owns? Not much

1) Should see layoffs in the next 2-3 weeks prior to the next quarter enrollment

2) No, there's no value in the organization beside the property it owns - otherwise the brand has been diminished along with the services it provides. The product the company is providing is not of competitive advantage within its industry.

3) Spring 2016