Corinthian Closing 10 Canadian Campuses

Corinthian Colleges ( COCO) set plans Tuesday to close 10 Canadian campuses in an effort to streamline its operations.

The Santa Ana, Calif., operator of postsecondary schools said the move would affect 12% of the student population at its CDI Postsecondary unit. The company said that through so-called train-outs, all students will be given the opportunity over the next 12 months to complete their studies at their current location, and no new students will be accepted at those schools.

"We periodically review our portfolio of campuses and identify those that are candidates for consolidation into other campuses or are not expected to achieve our long-term goals of growth in student population, revenues or cash flows," said CEO David G. Moore. "Our aim is to assure Corinthian's resources are deployed to provide the greatest benefit to the greatest number of our valued students."

The move comes just two weeks after the U.S. Education Department found violations in how a Corinthian school administered federal student aid programs. The finding led to the firing of two employees and pushed Corinthian stock down 12%.

On Tuesday, Corinthian fell 70 cents to $23.69.

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