Holding company to sell Springfield Everest College operation

In an agreement with the U.S. Department of Education, the Springfield campus operation of Everest College is up for sale by its holding company.

Everest Springfield is one of 85 campuses for which publicly traded parent Corinthian Colleges Inc. (Nasdaq: COCO) is actively seeking a buyer while classes continue. The company agreed to gradually wind down operations at 12 other schools, including one in St. Louis, said Corinthian spokesman Kent Jenkins Jr.

The company leases the Springfield campus, 1010 W. Sunshine St. in the Sunshine Office Center, from property owner Gordon Elliott, according to Greene County assessor records.

"Our goal is to find buyers who will continue campus operations. We want to have as much continuity as possible," Jenkins said, noting classes in Springfield have not been interrupted by the federal agreement.

Last month, the U.S. Department of Education's Federal Student Aid office placed an increased level of financial oversight on Santa Ana, Calif.-based Corinthian Colleges, stemming from the company's failure to provide records concerning enrollment and job placement as required by federal law, according to a federal news release. The DOE also said the company failed to fully address concerns about its practices, including allegations it used faulty job placement data in marketing claims and altered grades and attendance.

After putting Corinthian on a 21-day waiting period for federal student aid funds, the federal government agreed to issue $35 million directly to current students so classes could continue, according to the release.

Corinthian said it would sell or close its 97 campuses, which also include WyoTech, Heald College and QuickStart Intelligence, according to the company's website.

Jenkins said the company plans to complete the sale process within six months. Corinthian is currently fielding potential buyers, but it's unknown if the school operations would be sold in groups or individually, he said. Jenkins noted the goal is for the new buyer to continue classroom operations.

COCO shares were trading at 24 cents as of 10:18 a.m., compared to a 52-week range of 20 cents to $2.75.