The school officials did not provide a reason in the announcement. However, it looks like the school was having accreditation and financial issues.
Chancellor's problems were discussed in detail in a previous degreeinfo thread back in Nov-Dec 2012. There was general agreement that Chancellor faced the possibility of closure.
The closure won't affect very many students, because there aren't many left. According to HLC-NCA, there were only 243 students still enrolled in May 2013, of which only 38 were full-time. The numbers are probably even lower by now.
Accodring to Chancellor, they are currently working with multiple schools to place their students, although Alliant International University is the only one that has been named. AIU does offer business degrees, although they seem to be B&M programs at campuses in San Diego and Mexico City, which may not be ideal for students from a school in Ohio.
I'm shocked at the number of "accredited" colleges and universities closing and/or losing accreditation in the USA! I have a friend who is an airline pilot and he said that some airlines won't consider you for an interview because the college lost accreditation even though the degree was issued prior to loss of accreditation. Are there other industries that have that train of thought? Wow!
Out of the four thousand or so institutions of higher education in the U.S., very, very few lose accreditation. When they do, we end up talking about them here, so that tells you how rare it is.
Interesting article on Chancellor University's closing... http://www.crainscleveland.com/article/20130714/SUB1/307149978 And an Op Ed piece: http://www.crainscleveland.com/article/20130714/SUB1/307149985