ITT Educational Services Inc. files for Chapter 7 bankruptcy
INDIANAPOLIS, Ind. – The parent company of ITT Tech filed for Chapter 7 bankruptcy late Friday, according to our news gathering partners at the Indy Star.
ITT Educational Services Inc.’s liquidation comes after the company recently shut down more than 130 campuses. It was the final move for the for-profit college operator, which earlier this week disclosed it was ceasing all business functions.
The company listed both its assets and liabilities at between $100 million and $500 million.
ITT is the second major for-profit college operator to file for bankruptcy in the past two years amid a federal crackdown on the industry. Corinthian Colleges, which had nearly double ITT’s number of students, went bankrupt in May 2015.
ITT has blamed its downfall on overzealous government regulations. The federal government banned the school from accepting any more students with federal aid, which was a huge blow for the school, since it made most of its money from that aid.
The closing of the ITT Tech campuses displaced more than 35,000 students and more than 8,000 employees, including at least 662 workers in Indiana. The company employed 275 people at its Carmel headquarters.
Several Indiana universities are stepping up to help the students who suddenly don’t have a place to further their education. And new legislation has been proposed to assist the Hoosier veterans who stand to lose their G.I. benefits due to the closure.