Thread regarding Corinthian Colleges Inc. layoffs

You won't hear any of this publicly. CCI upper management is starting to take seriously the possibility of outright liquidation of the company. A LOT of the decision making process is going to be on student enrollment. If the enrollment drops off by 10% (which is what CCI publicly proclaims) then a slow and orderly teach out of poorly performing campuses is the likely outcome. If the enrollment drops off by more than 20% (which is much more realistic based on those actively involved in sales telling upper management) then outright liquidation of CCI becomes ever more attractive. It's just NOT that simple to teach out an institution. Very Few if any of the CCI ground institutions make substantive amounts of monies. Lose another 10% in enrollment then CCI begins to hurt. Lose another 20% in enrollment then CCI hurts BIG TIME. BIG TIME defined to mean that CCI can't keep up covering their losses. Also, CCI faces some HUGE PROBLEMS with their 3 year student loan default rate and could in 2015 lose eligibility for Title IV funding. In California a 20% loss of enrollment might be optimistic given that the state is for the moment flush with cash and expanding its Community College programs and the trade unions are expanding their paid apprentice programs. In Southern California, Everest is considered a BIG JOKE by everybody and the enrollment numbers have already dropped by 10%. In Northern California, Heald is just as bad off with enrollment drops of over 10%. It's one thing for former students that got ripped off telling prospective students not to waste ones time. It's another thing when former employees are going around telling prospective students that the school is a rip off.