Ontario’s Everest College shut down amid financial concerns

More than 3,000 students and staff will be out in the cold this winter after cash-strapped Everest College Canada suddenly closed its doors on Thursday.
The Ministry of Training, Colleges and Universities has suspended all operations at the vocational school effective immediately, EC said in a statement.
The decision was made by the superintendent of Private Career Colleges, an independent regulator and decision maker. The superintendent suspended EC because it was deemed to no longer be financially responsible, according to the Ontario government.
The National Association of Career Colleges confirmed the news on Thursday.
“This is an unfortunate situation for students and employees,” NACC CEO Serge Buy said in a statement.
The vocational school has about 2,600 students and 630 staff at 14 campuses in Ontario, including locations in North York, Scarborough, Brampton and Mississauga. EC’s primary emphasis is on training students for careers in the business, technology and health care sectors.
An Everest College spokesperson said the closure came as a “surprise” after “weeks and months” of working with the provincial government to deal with its financial issues. He added that school is “disappointed” by the decision.
“Effectively this means all instruction at Everest College of Canada campuses is terminated effective today,” the EC spokesperson said in a statement to CTV News. “We are working with the Ministry to determine our next steps and will update all concerned parties as we gain more information.”
MPP Reza Modiri, who handles Ontario’s post-secondary education portfolio, said he was “saddened” by the EC news in a statement issued Thursday.
“Our first concern is for the students and faculty affected by the suspension of all Everest College campus activities,” the Richmond Hill MPP said. “Our government is committed to helping impacted students and staff and supporting them through this difficult time.”
He said the school will have a budget of $3 million to complete training and refund students’ tuition fees.
Moridi added that the MTCU superintendent exercised her “legislative authority” to suspend EC’s operations “to protect the interests of its current or prospective students.”
Everest College can seek a hearing on the decision within the next 15 days, Moridi said.
Representatives from the MTCU informed students and staff of the closure on Thursday and are expected to remain on campus for up to three days. They are reportedly delivering the news to students and staff, then asking them to leave the property.
The NACC said in a statement it is “confident” that it can work with the Ontario government to mitigate the impact on EC students.
There were signs of EC’s looming money troubles last summer, when parent company Corinthian Colleges put all 14 EC campus locations up for sale. The California-based Corinthian Colleges agreed at the time to close 12 of its U.S. campuses and put others up for sale in July, along with its Everest College holdings in Canada.
The trouble started for Corinthian Colleges in January, when allegations surfaced that falsified data was being used in marketing to prospective students in Georgia. Federal investigators began to examine the company and the government withheld much-needed funding, sending the company into a financial death spiral.
An independent monitor was appointed in July to oversee the closure and sale of Corinthian’s campuses.
Earlier this week, Corinthian Colleges was suspended from public trading on the Nasdaq stock market for failing to file periodic reports on time.