Dive Brief:
- BioHealth College Inc., owner of the Bryman College chain in California, has filed for bankruptcy and been placed on heightened financial monitoring status by the U.S. Department of Education.
- It is unclear whether the financial problems will force the for-profit colleges to close. Bryman’s enrollment is estimated at well under 1,000, with campuses in San Jose, Hayward, San Francisco, and Los Angeles.
- According to BioHealth’s Chapter 11 bankruptcy filing, the San Jose company has assets of $50,000 and liabilities of between $1 million and $10 million.
Dive Insight:
As with the Corinthian Colleges Inc. case, the Department of Education’s attention could lead to federal funding restrictions, which could hasten Bryman College’s demise. In January 2013, Corinthian Colleges Inc. had paid BioHealth to take ownership of four Everest College campuses, which became Bryman colleges. Before that, BioHealth had fewer than 200 students. Bryman offers seven-month medical assisting and other health-care programs. In May, Bryman's San Jose campus was temporarily closed because of a rent dispute, which may have been a harbinger.
