Schaumburg-based Career Education Corp. to sell, close career colleges

Career Education Corp., a for-profit college chain, said it will close or sell all of its career colleges following financial losses and a federal regulatory crackdown.

The company will take a charge of $40 million to $50 million for the restructuring, Schaumburg-based Career Education said in a statement. The company's two universities will remain open.

The company's exit from career schools follows the collapse of Corinthian Colleges Inc., which declared bankruptcy this week, citing similar financial and government pressures on its operations. Career Education will let current students finish their programs at schools that are closing, a process called a "teach-out."

"In making this decision, we have chosen a path of gradual discontinuation, or teach-outs, rather than closing schools immediately," said Ron McCray, Career Education's chairman and interim chief executive officer. "Teach-outs minimize potential negative impacts on faculty, students and staff members."

Career Education fell 7 cents to $4.10 today in New York trading. The announcement came after the close of trading on Wednesday.

Teach-outs will begin immediately at 14 Sanford-Brown campuses and the Sanford-Brown online school. Career Education is trying to sell Briarcliffe College, Brooks Institute and Missouri College, according to the statement.

The company will continue running Colorado Technical University and American InterContinental University, according to the statement.