Zovio (ZVO) asks shareholders to dissolve company - Phoenix Business Journal

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Zovio had run into various legal troubles, stemming from its days running Ashford University, including a $22 million fine in March after a California court ruled it engaged in false advertising that misled students. phoenix $ZVO

Zovio Inc., an education tech company based in Chandler, is asking shareholders to dissolve the company after the business collapsed earlier this year.to vote in favor of its dissolution plan that would liquidate the company

. Zovio did not respond to questions about when the shareholder meeting and vote are expected to take place.from its online program management business in July. Zovio sold its for-profit online college, Ashford University, to the University of Arizona back in 2020, but continued to act as a service provider when the college was rebranded as the University of Arizona Global Campus.

This agreement to support the all-online UAGC, which constituted the majority of Zovio’s revenue, ended on July 31. Zovio had run into various legal troubles, stemming from its days running Ashford University, including a $22 million fine in March after a California court ruled itEarlier this year, around June 15, UAGC was put on probation by the Department of Defense, which barred the school from enrolling new military students, according to Zovio’s. The DOD also told current UAGC students to consider leaving the program; This drop in enrollment hurt Zovio’s ability to make money.

Zovio is now looking to sell its largest remaining business, Fullstack Academy, for between $34 million and $55 million. The company said that it has already seen some interest from would-be private equity buyers, but it warned that it may run out of funding before it can execute a sale.

 

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