ITT Educational Services Files for Bankruptcy After Shutdown

(Bloomberg) -- ITT Educational Services Inc. filed for bankruptcy after closing 136 technical schools, leaving over 35,000 students stranded in one of the largest college shutdowns in U.S. history.

The 50-year-old for-profit college operator, which had campuses in 38 states, said it was forced to close its doors after the U.S. Education Department demanded a steep increase in the security the company would have to post to guarantee federal student aid. More than 8,000 employees were affected, with the majority losing their jobs on Sept. 6, Carmel, Indiana-based ITT said.