A for-profit college chain with a Durham presence is shutting down operations.
ITT Educational Services (NYSE: ESI), the company behind ITT Technical Institutes, released a statement Tuesday saying that “with profound regret,” it is discontinuing all academic operations at its campuses across the country.
“With what we believe is a complete disregard by the U.S. Department of Education for due process to the company, hundreds of thousands of current students and alumni and more than 8,000 employees will be negatively affected,” according to the statement, which is referring to a decision by the DOE to ban the company from enrolling new students using federal financial aid.
The school has four campuses in North Carolina: two in Charlotte, one in Durham and another in High Point, according to its website. The Durham location, on Stirrup Creek Drive, consists of a School of Information Technology, a School of Electronics Technology, a School of Drafting and Design, and a School of Business.
The company says it explored several other options prior to the shutdown, such as transferring the schools to a nonprofit or public institution.
The majority of its more than 8,000 employees have been let go as of Tuesday, according to the company.
The New York Stock Exchange announced Tuesday it would start proceedings to delist ITT’s stock, and suspended trading immediately.
The company could not immediately be reached for comment. A note on the website says the school does not guarantee that credits earned at ITT will be transferable to other colleges.
According to the company, its institutes are located in 38 states, with more than 40,000 students attending classes at more than 130 campuses.
By: Lauren K. Ohnesorge (Triangle Business Journal).
Photo: Yahoo.
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