Cortiva Institute

Summary

Chief Restructuring Officer

Pompano Beach, FL

The country’s largest dedicated massage therapy and skin care school, with 29 campuses in 12 states and 2,400 students.

In the 18 months prior to our retention, the Company President made a series of changes that led to lower leads and enrollments, counter productive organization design, systems installation failures, worsening student outcomes and annual cash losses increasing from $5MM to $18MM. CMA was retained as Chief Restructuring Advisor to replace existing management.

Key Challenges

Operating Losses

Declining Enrollment

Unaccountable Organization Design

Engagement Highlights

After an initial assessment of the situation, CMA initiated a dual-path approach to right-size operations and position the Company for sale
Implemented cost-reduction initiatives to preserve liquidity, revamped marketing + financial aid processing to improve enrollment metrics and student retention, and monetized the Company’s portfolio of student loans through an asset sale
Successfully completed the sale of 7 campuses to a strategic buyer
- Led the pre-transaction diligence and the post-transaction services agreement on behalf of the seller
Initiated and oversaw the teach-out/closure of the remaining 22 campus locations
- Located “soft-landings” for closed-campus students through a combination of transfer partner outreach, accelerated courses, and refunds
Initiated an Assignment for the Benefit of Creditors (“ABC”) to liquidate the estate of the Company; led the post-ABC wind down operations, with a focus on regulatory requirements and the completion of the Department of Education close-out audits

Cortiva Institute

Summary

Chief Restructuring Officer

Key Challenges

Engagement Highlights

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