Home News Accreditor rejects EDMC’s sale of Art Institute of Pittsburgh for “insufficient information”

Accreditor rejects EDMC’s sale of Art Institute of Pittsburgh for “insufficient information”

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A regional accreditation agency has rejected Education Management Corp.’s plan to sell the Art Institute of Pittsburgh and Art Institute of Philadelphia to a California-based nonprofit foundation, according to a decision posted on Thursday.

The Philadelphia-based Middle States Council on Higher Education cited “insufficient information and evidence” in denying EDMC’s requests at its June 22 meeting. EDMC is welcome to resubmit the request “after additional information needed to complete the review” is gathered, the accreditor’s statement read.

At the same time, Middle States took action on financial shortcomings at the Art Institute of Philadelphia.

The commission warned the school its accreditation may be in jeopardy because of failure to show “documented financial resources, funding base, and plans for financial development adequate to support its educational purposes.” The accreditation agency asked the institute to submit a report by Sept. 15 showing evidence it meets standards.

The decision is a setback for EDMC’s plans to sell all of its schools that are currently accepting new students to the Dream Center Foundation. The $60 million proposed deal, announced in March, would send 31 Art Institute schools, as well as the South University and Argosy University educational systems, to the Los Angeles-based philanthropic organization that funds programs across the country for underprivileged people.

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