A philanthropic foundation in Los Angeles is buying the vast majority of career colleges owned by Education Management Corp., including 31 Art Institute campuses, Argosy University and South University, in a deal announced Friday that underscores the instability of the for-profit education industry.
Education Management (EDMC) was once one of the largest for-profit college chains in the country, with more than 150,000 students studying such fields as culinary arts, health sciences and education at 106 locations in 32 states and Canada. Tepid demand in recent years sank enrollment to 65,000 as of October. By then, the company had announced the closure of 23 of its 26 Brown Mackie College campuses and 19 of its 52 Art Institutes locations.
“We feel the Art Institutes have a good history, despite the last few years, and we’ll be able to turn that back around,” said Randall Barton, managing director of the Dream Center Foundation, the outfit acquiring EDMC’s schools.
The foundation funds programs through the Dream Center Los Angeles that provide job training and free preparation classes for the California high school equivalency exam, as well as a host of services for the homeless, veterans and impoverished children. Barton said acquiring EDMC aligns with the foundation’s desire to use education as a means of transforming lives.