The Art Institutes, a network of for-profit higher education institutions, were acquired by the Dream Center Foundation in 2017.
The 2017 Acquisition
The Art Institutes, which comprised a system of art and design schools across the United States, were formerly owned by Education Management Corporation (EDMC). In 2017, EDMC sold this network of schools to the Dream Center Foundation.
The Dream Center Foundation is recognized as a Los Angeles-based Pentecostal organization. This acquisition marked a significant shift for the schools, moving them from a large publicly traded education company to a non-profit foundation with a distinct mission focusing on community outreach and spiritual development.
Key Details of the Acquisition
| Detail | Description |
|---|---|
| Buyer | Dream Center Foundation |
| Seller | Education Management Corporation (EDMC) |
| Year of Sale | 2017 |
| Buyer's Nature | Los Angeles-based Pentecostal organization |
| What was Sold | The Art Institutes (a network of schools and campuses) |
Background of The Art Institutes
The Art Institutes system was a prominent chain of colleges specializing in creative arts, design, fashion, culinary arts, and media arts programs. For many years, these institutions operated under the ownership of EDMC, which was once one of the largest providers of for-profit postsecondary education in North America. The sale to the Dream Center Foundation was part of a broader trend of changes and consolidations within the for-profit education sector during that period.
Impact and Subsequent Developments
Following the acquisition, the Dream Center Foundation faced significant challenges in managing the extensive network of schools, including accreditation issues, regulatory scrutiny, and financial difficulties. These challenges ultimately led to the closure of many Art Institute campuses over time.
- Accreditation Issues: Many campuses struggled to maintain their accreditation under the new ownership.
- Financial Strain: The operational costs and liabilities associated with the large number of campuses proved challenging.
- Campus Closures: A significant number of Art Institutes campuses ceased operations, impacting thousands of students nationwide.
This transition highlighted the complexities of operating large educational institutions, especially within the context of changing regulatory landscapes and student loan policies.
