The facility will start letting employees go on Wednesday, with a total loss of between 69 and 72 jobs.
The state Department of Human Services told parents to remove their children from the school last week after a seven-month investigation concluded that students were subject to inappropriate sexual role-play, public humiliation and physical deprivation.
The state gave the academy 90 days to correct a list of violations, said DHS spokesman Gene Evans, but had not heard anything since.
The school's parent company, California-based Aspen Education Group, announced the permanent closure Monday in a Worker Adjustment and Retraining Notification Act to the state's Department of Community Colleges and Workforce Development.
In the notice, Mark Dorenfeld, senior vice president for Aspen Education, states that the company is unable to provide 60-days notice as required by the federal act because "the closing is the result of an unforeseeable business circumstance;
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