Last August, Jerry Barnett told Arkansas Business that he had no plans to move the home office of his chain of career colleges out of Little Rock.
His subsequent decision to sell most of his ownership has made his preference unimportant. Education America Inc. is moving to the suburbs of Orlando, Fla.
“I love Little Rock, I’m from Little Rock, it wasn’t my idea,” Barnett told Whispers. “But I’m a consensus manager, and the management team felt this was a good move for them personally.”
Eighteen of the company’s 20 top executives had been hired in from other parts of the country, so their attachment to Little Rock was not as solid as Barnett’s. He’s staying put near the Country Club of Little Rock in a house that was pictured in a real estate feature last week.
Barnett currently owns 90 percent of Education America, which operates 22 Remington College campuses around the country. He is also chairman of the board.
But he isn’t CEO anymore — that title belongs to Jack Forrest — and he is in negotiations with an undisclosed buyer or buyers to sell most of his interest in the company. The deal, which he said may or may not go through, would leave him with a 10-15 percent stake.
Halfway There
Since the beginning of the year, about 40 of the 80 corporate positions have been moved from Education America’s offices in the Museum Center in the River Market to new digs in the Lake Mary area north of Orlando, Barnett said. And about 20 of the people who had those positions in Little Rock, especially those earning six-figure salaries, have gone to Florida with their jobs.
Forrest has already moved.
The rest decided to stay in Little Rock and look for work elsewhere.
By next summer, about 30 more jobs will be moved to the Sunshine State.
“A couple of departments will remain in Little Rock till next summer and move at that time,” Barnett said. “About 10 jobs will remain here indefinitely.”
None of this affects the jobs at the Remington College campus off Col. Glenn Road near Interstate 430.
Why Florida?
Some of the managers who influenced Education America’s move to Orlando had come from Florida. But the fact that Florida levies no individual or corporate income tax also had “a lot” to do with the decision, Barnett said.
“It wasn’t the only factor, but it was a significant factor,” he said.
While some employees were offered raises in addition to generous moving allowances, that was not universally the case. Barnett said the cost of living in the Orlando area was a consideration for employees faced with the choice of moving or finding new jobs.
“I’d say housing is more expensive than here, and that certainly was an issue, but one we were able to deal with,” he said.
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