Nonprofit Dream Center Facing Bankruptcy

The nonprofit Dream Center Education Holdings, which owns the Art Institutes, may be at risk of going bankrupt.

In a letter to its accreditor, the Northwest Commission of Colleges and Universities, the company said that it is "at risk of becoming financially insolvent and is now working with the United States Department of Education to reorganize AI Seattle and the existing Art Institute campuses to preserve their ongoing operations."

Last week the Washington Student Achievement Council also designated the Art Institutes of Seattle as "at risk" of closing. The council oversees colleges and universities in the state.

About 30 Dream Center colleges have closed since the missionary organization purchased them from Education Management Corporation.