Troubled education provider Vocation has entered voluntary administration after investors refused to put more money into the business.
Vocation has been under pressure since the Victorian government withdrew $20 million in funding in 2014 amid criticism of the company's courses.
Chairman Doug Halley said while the company's turnaround plan had been proceeding well, investors were unwilling to inject extra money into Vocation.
"The board believes that the appointment of a voluntary administrator at this time is the best way to protect the interests of the shareholders, creditors, students and staff of the company," he said in a statement on Thursday.
Vocation said in its 2015 financial statements that its ability to keep functioning depended upon raising extra funds, and other factors.
Earlier this week, Vocation announced it intended to raise equity through a private placement of shares and options, after having explored various funding alternatives.
"However, contrary to earlier indications, it is now clear that current and potential investors are not willing to inject additional funds into the company," Mr Halley said.
Vocation will work with administrator Peter Gothard, of Ferrier Hodgson, to explore options to allow Vocation's operating entities to continue as going concerns.
The company has lost more than 95 per cent of its market value since October 2014, when it announced the loss of Victorian government funding for substandard practices in some of its training businesses.
Vocation posted a $300 million loss for 2014/15, and has since had a change of management and undertaken an extensive restructuring of its business.
In June, the company announced a turnaround plan with a target of a return to profitability within three years.
Vocation is involved in three class actions against it but said earlier this week that it hopes to settle them outside the courtroom through mediation.
Vocation's shares have been suspended from quotation on the Australian share market since November 16, having last traded at 12 cents.
AAP tsc/bt
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