SAN FRANCISCO--(BUSINESS WIRE)--Heald College announced today that it has launched a campaign to keep its doors open after lawyers in the California Attorney General’s office made “unreasonable demands” that have thwarted a possible sale that would enable the college to continue operating and avoid disrupting the lives of thousands of students and employees.
“We’ve survived the San Francisco earthquake and two world wars in our 152-year-history,” said Heald College President Eeva Deshon. “Now we’re fighting to survive bureaucratic meddling in the Attorney General’s office. Time is running out to arrange a sale. Our parent organization only has until mid-April to reach an agreement with a buyer or Heald College will have to close its doors.”
In an open letter to Attorney General Kamala Harris, Deshon said lawyers from Harris’ office are effectively blocking a sale of the college by Heald’s parent organization, Corinthian Colleges. Corinthian is being sued by the state as it attempts to sell off its remaining assets to resolve its financial and regulatory problems. Unless Heald can be sold, Deshon said the 152-year-old California institution will be closed and its 9,000 students will not be able complete their education. More than 1,000 Heald College faculty members will lose their jobs. Deshon called on Harris to personally intervene to resolve the issue and help keep the college open.
More than 4,500 Heald College students, faculty, staff and supporters have signed a petition at www.saveheald.com to Attorney General Kamala Harris and plan to hold rallies on Friday in Sacramento and San Francisco to ask her to personally intervene to help keep the college from closing. Heald College supporters plan to hold a rally at the Attorney General’s Sacramento office at 10am and at the Attorney General’s San Francisco office at 3pm.
“…We are in grave danger of being closed because of unreasonable demands being made by lawyers in the Attorney General’s office who are suing our parent organization,” Deshon wrote in her letter. “…Our students are satisfied with the education they are receiving at Heald College and believe their education and training is valuable and provides benefits to them.”
Heald College was purchased in 2010 by Corinthian Colleges, which has closed a dozen of its campuses and sold more than 50 campuses in other states as part of a settlement with the U.S. Department of Education that allows the campuses to continue to operate under new ownership. In California, however, efforts to work out a similar transaction to sell Heald College have been blocked by demands of the Attorney General’s office against Corinthian and its subsidiaries. These demands include a requirement that the buyer enter into an injunction that effectively requires the buyer to assume blame and possible liability for the actions of an organization it had nothing to do with before the acquisition.
“The demands being made of prospective buyers and Heald’s parent organization may effectively block any chance to sell Heald, and will force Heald’s closure,” Deshon said. “It clearly serves no public purpose. The Attorney General’s office has been a driving force in putting Corinthian Colleges out of business. Corinthian won’t be operating any schools. The sale of Heald College will ensure that students can continue their education under new ownership.
“If Heald College is forced to close, its students will be forced to discontinue their studies. Closure of the college will have a devastating impact on the students’ lives and aspirations. It means that their Pell Grants and Cal Grants will not reset, and if they apply for the Federal loan discharge program, they also will lose their academic credits. Blocking the sale by imposing unreasonable demands only serves to punish our students and employees.
“Heald College is a vibrant California institution that has provided a quality education to 43,000 graduates over the past decade,” Deshon said. She added that a recent survey found that the vast majority (more than 85%) of Heald students are satisfied with the education they are receiving.
ABOUT HEALD COLLEGE:
Founded in 1863, Heald College has a proud history of educating Californians and helping them achieve their life goals. Among its alumni are people who helped shape the political, cultural and commercial landscape of the state. They include reform Governor Hiram Johnson, Bank of America founder A. P. Giannini and M. H. de Young, founder of San Francisco’s de Young Museum.
OPEN LETTER TO CALIFORNIA ATTORNEY GENERAL KAMALA HARRIS:
Dear Attorney General Harris:
We need your help to save Heald College, and we need it soon.
Heald College has a proud history of educating Californians and helping them achieve their life goals that stretches back more than 150 years. Among our alumni are people who helped shape the political, cultural, and commercial landscape of this great state. They include former Governor Hiram Johnson, Bank of America founder A. P. Giannini, and M. H. de Young, founder of San Francisco’s de Young Museum.
Today, Heald College remains a vibrant California institution that provides a quality education to approximately 9,000 students and employs some 1,500 people at 10 campuses in the state and two campuses in Oregon and Hawaii. Our academic credits are recognized by more than two dozen colleges and universities including California State University. A recent survey confirms that the vast majority (more than 85 percent) of our students are satisfied with the education they are receiving at Heald College and believe their education and training is valuable and provides benefits to them. Heald is highly regarded by the employers who hire our students and in the communities we serve.
Heald College occupies a unique position among California’s educational institutions. For some students, we are their first college experience. Approximately half of our students, however, have tried community college or a four year institution and have come to us after those institutions could not, or did not, meet their needs. A large number of our students work or have children and need the flexible class schedules and other services that we offer.
During its long history, Heald College has survived the devastating 1906 San Francisco earthquake and two world wars. But we are in grave danger of being closed because of unreasonable demands being made by lawyers in the Attorney General’s office who are suing our parent organization – demands that if not resolved will result in the shameful destruction of Heald College.
Five years ago, Heald College was purchased by Corinthian Colleges, Inc., which has now agreed with the U.S. Department of Education to sell or teach-out its schools and go out of business. As part of a settlement with the Department of Education, Corinthian closed about a dozen of its campuses in other states and sold more than 50 of the rest. Heald College is the largest remaining college owned by Corinthian.
Corinthian is now in the process of trying to sell Heald College, which would allow Heald to remain open and its students to continue their education and save more than 1,000 jobs. Several highly qualified buyers – including non-profits – have expressed serious interest, but some already have been discouraged by your staff lawyers’ insistence that they agree to overly burdensome oversight and onerous financial conditions, or be threatened with liability for the alleged past practices of Corinthian Colleges. That effectively blocks any chance to sell Heald College and will force its closure and liquidation. Interested buyers remain, but it is imperative to a sale that they not be scared off by unreasonable demands or threats from your office.
The Attorney General’s office has been a driving force in putting Corinthian Colleges out of business. Corinthian won’t be operating any schools. The sale of Heald College will ensure that students can continue their education under new ownership. If Heald College is forced to close its doors, its students will be forced to discontinue their studies. Closure of the college will have a devastating impact on the students’ lives and aspirations. Their Pell Grants and Cal Grants will not reset, and, if they apply for a Federal loan discharge, they will also lose their academic credits.
Heald College has already addressed the concerns specific to Heald College that have been identified by attorneys in your office. Beyond those changes to Heald practices, what your staff lawyers want from prospective buyers and our parent organization may simply be unacceptable to those parties. Blocking the sale by imposing unreasonable demands only serves to punish our students and employees. All we ask is that potential buyers not be threatened with devastating lawsuits for alleged conduct of prior ownership so that Heald College can survive under new ownership and continue to serve its students.
Time is running out to arrange a sale. Our parent organization only has until mid-April to reach an agreement with a buyer or Heald College will have to close its doors. So, again, on behalf of our students, staff and faculty, I am calling on you to help save Heald College.
Sincerely,
Eeva K Deshon
President & CEO
Heald College
