Nova Possibly Shutting Down?

[funkymonkey]

Soooo... who here's packing bags and who's looking for a new job?

http://search.japantimes.co.jp/cgi-bin/fl20070925zg.html

Is it all over for Nova?

As 'eikaiwa' giant plans school closures amid credit crunch, some fear the worst

"The dark clouds that have been hanging heavily over us will be cast aside," reads the English translation of Nova Corp. CEO Nozomu Sahashi's memo faxed to staff Friday. "I said previously 'the darkest time is before the dawn,' and finally the first light of dawn can be seen."

News photo

The "Nova Bunny" holds up a demand for payment that was sent to a Nova-managed apartment after the corporation didn't cough up the rent this month.

Nova is on the rocks, and the rosy forecast from the man at the helm of the Osaka-based "eikaiwa" behemoth may not be enough to reassure members of the 7,000-strong Nova crew — including some 5,000 foreigners — that the company isn't sinking as Japan's biggest conversation school chain plans to abandon at least 200 of its 900 branches, according to reports.

For the second month in a row, wages were paid late in September. Some teachers — those in the Osaka and Tokyo areas — were paid on time on the 14th; others received their wages on the 18th. Titled instructors are anxiously waiting to see if they get paid as promised on Tuesday 25th — 11 days late. Teachers in Nova-managed accommodation have received eviction warnings over unpaid rent despite the fact the company has been deducting money for this purpose from employees' salaries.

Nova's labor-relations and legal woes over the past years have been well documented, but the biggest blow for the firm was the punishment meted out by the Japanese government to the firm for deceiving students about lesson availability: The Ministry of Economy, Trade and Industry (METI) slapped business restrictions on the corporation in June, banning the signup of new students on upfront — and lucrative — long-term contracts for a six-month period. The bad publicity generated by the decision has led to increasing numbers of students canceling contracts and demanding refunds from the cash-strapped firm.

"It's kind of like a financial run on a bank," said Louis Carlet, deputy secretary general of the National Union of General Workers Tokyo Nambu, which counts hundreds of Nova employees among its members. "That's why this could be the biggest consumer wipeout in Japanese history, because the customers are depositing all this money as if in a bank, assuming the money will be there, and now . . . Nova students are getting worried that they're gonna get wiped out, so they're rushing to cancel the contracts and the more they rush the more Nova can't pay their bills."

However, Nova boss Sahashi is upbeat about the future. "I would like to inform you that the prospects look clearer for the refunds of cancellations that have accumulated until now and that a schedule has been established for refunding this money from the end of this month," he wrote to staff Friday. "With this there will be no concern regarding salaries from next month onwards. I cannot announce further details at the moment but would like you to feel reassured and concentrate on business as usual."

So what — if anything — does Nova have up its sleeve? Nova declined to comment over the phone for this story and e-mails to the corporation's Tokyo and Osaka offices went unanswered.

The memo failed to impress Ken Worsley, Tokyo-based business consultant and editor of Japan Economy News.

"It is vague and contains no proof or evidence that something legitimate is on the way," he wrote in an e-mail. "We should remember that in December 2005, a few weeks before eikaiwa operator NCB went bankrupt in January 2006, its management issued a similar notice, telling employees that they were about to receive a 'capital injection' from a large investor. It never happened, and on the day before January's payday, NCB locked its doors forever and failed to pay staff or instructors. I see the same pattern evolving with Nova."

The closure of some 200 schools, reportedly in the Tokyo area and Osaka, Hyogo and Aichi prefectures, should bring in a bundle of cash from savings on rent and the possible sale/rental of Nova-owned property. Is this the first stage in a process of consolidation that could save Nova from bankruptcy?

"I don't think that Nova's reported downsizing is a plan in the sense of being a well-thought-out business strategy so much as it is damage control," Worsley said. "It has been suggested that they are being evicted from some locations, which would certainly indicate that cash flow problems run truly deep. On the other hand, if Nova has embarked upon a strategic downsizing without making an announcement to its employees and investors, one is forced to wonder to what extent the top management may be trusted."

With Nova's share price hovering around the ¥40 mark, down from around ¥100 in June (after hitting a high of ¥1,750 in 1999) and last quarter's dismal financial report — Nova posted a ¥4.5 billion operating loss over the April-June period (before the METI order), nearly four times the loss over the whole of the last financial year — you might expect shareholders to be clamoring for the heads of top management. However, Nova's top shareholders at least — Nova Kikaku (the corporation's holding company) and Sahashi himself — appear to have faith in the current management. And despite the firm now going for a knock-down price, the fact that the same people who got Nova into this mess are still at the controls may put off potential buyers or partners.

"It would be a brave company that would take over a company in Nova's situation without a change in management," said Bob Tench, vice president of the Nova union. "The company has a large infrastructure, which in itself is a valuable asset; it has a lot of experience amongst its employees; and with the share price being so low it would be a good buy for a company — provided they could insert a new top management to run things properly from now on."

Travel agency H.I.S. was reported to have been talking with Nova about a tieup in July, and some reports have suggested the stumbling block was Nova management's insistence on staying put. Sahashi, in an interview following the METI order, also ruled out joining forces with other eikaiwa firms. "I don't want to tie up with a fellow trader," he said.

With Nova running out of both money and options, talk is increasingly turning to the possibility of bankruptcy.

"I think that Nova's chances of pulling through and surviving as a company are slim at best," Worsley said days after the school closures were reported. "I have predicted before that the company would go under around the beginning of November, and I see no reason to change that statement at this point. Late payment is a huge red flag that a company simply does not have a strong enough cash flow to deal with its operating costs. Given that we have seen two late salary payments in a row, I take this as a sign that Nova is nearing insolvency."

If Nova files for bankruptcy, one concern — among many — for employees would be getting hold of unpaid wages. If teachers have time left on their visas and procedures go smoothly, this wouldn't be a major problem, according to Carlet.

The prospects for students hoping to get money back that they paid Nova upfront for lessons, however, are bleaker.

"The students are very unlikely . . . to get much of their money back, and in the past — like with Lado — other schools have been willing to take the students, sometimes for free or half-price," Carlet said, referring to an eikaiwa chain that went bankrupt in May. "However Nova, being the Goliath it's always been in the industry, is not in either of the two industry organizations."

A nightmare even worse than bankruptcy for Nova staff and students would be if the corporation soldiered on after all hope was lost, said Carlet.

"If they don't officially go bankrupt that means the teachers won't be dismissed, they just won't be paid, and if they resign they'd have to wait three months (for unemployment insurance), and if they don't resign we have to prove that it's effectively a bankruptcy, which takes time, so either way they're in serious trouble if Nova doesn't officially go bankrupt."

It's a scenario that is well within the realms of possibility considering how much is at stake for those at the top of the firm, said Worsley.

"The only incentives are fear and greed. Let's not forget: Should Nova go down, its top management will be in serious personal financial difficulties and will be unhireable. For top management, it makes sense to keep the company running as long as possible in hopes that someone will buy it out. This happened with NCB and Lado, yet in the end no one bought them out."

With so much uncertainty surrounding the firm's future, many teachers are not sticking around to see if Nova can weather the storm. Berlitz alone received some 200 applications over a couple of days last week from Nova teachers seeking jobs, said a company source.

Roy Beaubien, who jumped ship after the late payment of wages this month, advises other Nova employees to do the same.

"I've seen a Japanese English conversation school try to avoid going bankrupt first hand before. It was hell. Only many years later did any teachers — and only a few of them that stuck it out for years through many court hearings and after paying years of union fees — finally get some of their money from the company through the court system.

"As for me? I was until very recently a Nova employee. I applied for my paid holidays immediately after our pay was 12 hours later than usual. I then handed in my resignation soon after that. I learned my lesson years ago and I vowed never to go through that again. This time I wanted to get out when I was still likely to get what I was owed."

The "Nova Bunny" holds up a demand for payment that was sent to a Nova-managed apartment after the corporation didn't cough up the rent this month.

[m3gtr]

Bud, this story has been doing the rounds for months now...

They wont just fold but theyre in some deep dog shit and rightfully so. Eikaiwa are crap, dishonest and unscrupulous lesson peddlers.

Im glad i dont have to worry, i work at a uni...

but for the poor guys and girls who do work at fast english restau..i mean english schools do have some serious thinking to do.

This place is less about money now and more about survival. Itd be good for the industry too..clean house, get rid of the sliders and leave the teaching to those that are here to teach.

[Beer Baron]

doesn't sound promising. I'm curious what uni do you work at adam, and what field do you teach?

[m3gtr]

doesn't sound promising. I'm curious what uni do you work at adam, and what field do you teach?

im in the curriculum development section for the english department. I create, i teach and i learn. its a multimedia uni in akihabara.

Definitely dont get paid enough for the amount of hours and effort i put in but hey, thats what negotiations are for.

Nova is shutting down 200 schools. Hundreds of teachers are applying to places like berlitz...they received a few hundred applications in one day! Theres going to be a glut of unemployed teachers on the market so my advice is that if anyone is in that position they secure a job QUICK.

your right richard, its bad news with a capital B but this has been coming for a while. The writing was on the wall years ago.

Edited September 28, 2007 by m3gtr

[Laurence]

The corpse is twitching!

---------- Forwarded message ----------

To all instructors;

I deeply regret to inform all instructors that we are unable to pay

salaries on Monday October 15th. This is because it has not been

possible to gather sufficient funds as quickly as planned.

Instructors are now scheduled to be paid on Friday October 19.

I am truly sorry about the lateness of this notice and the

inconvenience and hardship this causes. I ask for your understanding

and patience during this difficult period.

Nozom Saruhashi

CEO Nova Group

[gnki'vlct]

hmmm i dont get it

its like mcdonalds going up shits creek...

it just wouldnt happen!

ohwell must be a japanese thing

meh, for those i guess, this makes their chances of "working in japan whilst getting a job easily" faaaairly bleek.

gg nova!

but not to worry methinks, i recently saw in my LOCAL PAPER (yes not the statewide paper, but the suburb edition..) an advertisment for an australian owned restaurant in OSAKA that are/were hiring people

so yeah thats pretty cool i guess if u wanna get a 'feel for the life' whilst doing some easy going sh*t?

but anyways, back to NOVA.

i was keeping an eye on some forums and sites about this situation, was actually meant to post here about it. but its pretty weird and sad how something so big can f*ck up, and as mentioned in the above "article" management would most "probably" have to be changed if someone was to buy this buggered company.

sure they say they have a "big investor" who MAY want to help them, it could be from overseas or whatever, u never know and i dont know how sh*t works over there, but yeah. it would seem IN THEORY an alright company to fix considering the amount of employees etc it has.....

but the other company who once cried wolf went bust so yeah... history tends to repeat itself i beleive.

hrmmm.

and M3GTR, u seem like a lucky person, dont know how u got urself in ur current position, dang! would be awesome to spend time there having a NORMAL job, any plans on coming "back to" australia?

Edited October 12, 2007 by gnki'vlct

[m3gtr]

and M3GTR, u seem like a lucky person, dont know how u got urself in ur current position, dang! would be awesome to spend time there having a NORMAL job, any plans on coming "back to" australia?

no plans to come back... indefinitely. Oz has nothing for me except family, racing and mates. I have that here too - in spades plus much more money.

No ones job is ever safe but i definitely have a job many would gladly kill me for...i have to be on guard every day.

unfortunately its not like the 90's anymore. The days of proliferation in the sexual and monetary departments are long gone and severely over rated.

Nova going down will actually be a good thing for the industry...purge the place of those who dont really care about what they are doing, where they are going...use Japan for what they can get...

Im settled, my wife and i make good wages and we enjoy our work. Im in this for many other people...not just myself.

mate...i was there at the right time in the right place. Set my sights on the target and shot at it with all i had...

appears to have worked....

Now...its time to completely abuse the crap out of my one car a year personal import allowances..

think ill start with a 2004 CLK Mercedes.

watch this space.

[Streeter]

Nova going down will actually be a good thing for the industry...purge the place of those who dont really care about what they are doing, where they are going...use Japan for what they can get...

Maybe Im just reading it the wrong way but it really sounds like you are implying anyone working for nova doesnt know how to teach and should leave. Its a little bit too derogatory for someone who admits the main reason they arent working for an eikaiwa is that they were in the right place at the right time

If this isnt what you meant then apologies, pompous pricks working in a job with better perks, more pay and then go on to pay out others less fortunate than them selves are one of my pet hates.

[gnki'vlct]

Maybe Im just reading it the wrong way but it really sounds like you are implying anyone working for nova doesnt know how to teach and should leave. Its a little bit too derogatory for someone who admits the main reason they arent working for an eikaiwa is that they were in the right place at the right time

If this isnt what you meant then apologies, pompous pricks working in a job with better perks, more pay and then go on to pay out others less fortunate than them selves are one of my pet hates.

well yeah, that quite possibly could have been what he was implying...

but if i was to go to japan for lets say a little while, being able to work for nova easily would allow me to earn money whilst stuffing around in japan.

but as i said, there are most likely to be other jobs like the ad i saw in my local paper.... thats if u want to have some extra cash on the side..

but one thing is for sure, i will go there for a little well deserved holiday, ive been working my arse off for the past few years and im getting really tired and wanna have fun, also never been outside of australia so itd be a good experience, and atleast now i know someone whos from japan and she'll be more than willing to lugg me around, so im grateful for that!

Edited October 21, 2007 by gnki'vlct

[m3gtr]

Maybe Im just reading it the wrong way but it really sounds like you are implying anyone working for nova doesnt know how to teach and should leave. Its a little bit too derogatory for someone who admits the main reason they arent working for an eikaiwa is that they were in the right place at the right time

If this isnt what you meant then apologies, pompous pricks working in a job with better perks, more pay and then go on to pay out others less fortunate than them selves are one of my pet hates.

just to clear this up, i was not implying that people who work at NOVA cant teach and should leave. Unfortunately, that company has sucked the life out of many a good teacher and the leaches just keep asking for more. There are some in the industry that only come here to get what they can out of the country ( cars, women, sex and money)...its always take, take, take. never give, give, give. Thats one of MY pet hates. Putting in hours at the eikaiwa dos NOT count. What you do outside DOES. I have no time for people like that, Its selfish, degrading and if that person happens to be aussie, personally humiliating.

I take great care to make sure the Japanese i meet have a high opinion of me otherwise it can effect much more than myself. Im much more restrained and conservative than i used to be.

The japanese take a group mentality approach. Things are always done for the sake of the group. If One aussie is out there making a complete ass of himself, its going to reflect badly on aussies in general.

unfortunately, some on this site have been kind enough to ruin opportunities i had and lost because of this selfish, all for me attitude.

If youre going to be like that, i dont need to know you. Please do the right thing and represent yourselves well if you live here. Unfortunately for me, others who dont even know me are of the opinion that they do and thats bullshit to be honest.

Edited October 22, 2007 by m3gtr

[gnki'vlct]

just to clear this up, i was not implying that people who work at NOVA cant teach and should leave. Unfortunately, that company has sucked the life out of many a good teacher and the leaches just keep asking for more. There are some in the industry that only come here to get what they can out of the country ( cars, women, sex and money)...its always take, take, take. never give, give, give. Thats one of MY pet hates. Putting in hours at the eikaiwa dos NOT count. What you do outside DOES. I have no time for people like that, Its selfish, degrading and if that person happens to be aussie, personally humiliating.

I take great care to make sure the Japanese i meet have a high opinion of me otherwise it can effect much more than myself. Im much more restrained and conservative than i used to be.

The japanese take a group mentality approach. Things are always done for the sake of the group. If One aussie is out there making a complete ass of himself, its going to reflect badly on aussies in general.

unfortunately, some on this site have been kind enough to ruin opportunities i had and lost because of this selfish, all for me attitude.

If youre going to be like that, i dont need to know you. Please do the right thing and represent yourselves well if you live here. Unfortunately for me, others who dont even know me are of the opinion that they do and thats bullshit to be honest.

you obviously take the internet pretty seriously??? or have some people actually pissed you off in person? lol

I dont know what you're talking about (in the past or what not) but yeah..

and besides, japanese people already know what "aussies" are like, there are tonnes of them in australia doing study and work holidays visas, so its not like "westerners" are unknown to them, and if so.. most will soon know

but yeah, if you are in japan it would be different.

what examples of aussies making an ass of themselves are there anyways, im curious.... <_<

Edited October 22, 2007 by gnki'vlct

[Streeter]

just to clear this up, i was not implying that people who work at NOVA cant teach and should leave. Unfortunately, that company has sucked the life out of many a good teacher and the leaches just keep asking for more. There are some in the industry that only come here to get what they can out of the country ( cars, women, sex and money)...its always take, take, take. never give, give, give. Thats one of MY pet hates. Putting in hours at the eikaiwa dos NOT count. What you do outside DOES. I have no time for people like that, Its selfish, degrading and if that person happens to be aussie, personally humiliating.

so any work I do doesnt count and any work you do does?? or are you saying I have to put hours in at the community centre for me to be able to say Im worthy of staying in Japan?

I take great care to make sure the Japanese i meet have a high opinion of me otherwise it can effect much more than myself. Im much more restrained and conservative than i used to be.

Not sure if this is directed at me or at anyone working at an eikaiwa. I think Ive been here a fair few more years than you and Ive seen my fair share or JETs etc acting like complete tools aswell. So enough of the gross generalisations/implications already.

The japanese take a group mentality approach. Things are always done for the sake of the group. If One aussie is out there making a complete ass of himself, its going to reflect badly on aussies in general.

thanks for the tip, living in an area made up of mainly 50-70 year olds the Americans leveling the whole place in WWII does a lot more for my `reputation` than a few drunk morons though.

unfortunately, some on this site have been kind enough to ruin opportunities i had and lost because of this selfish, all for me attitude.

If youre going to be like that, i dont need to know you. Please do the right thing and represent yourselves well if you live here. Unfortunately for me, others who dont even know me are of the opinion that they do and thats bullshit to be honest.

not sure what you are talking about here. I rarely drink and am actually a very reserved person. If the Japanese are so shocked by my behaviour word must have traveled far as Im in Osaka not Tokyo LOL although Im starting to understand why some ppl who havent met you might not hold you in very high regard.

[gnki'vlct]

so any work I do doesnt count and any work you do does?? or are you saying I have to put hours in at the community centre for me to be able to say Im worthy of staying in Japan?

Not sure if this is directed at me or at anyone working at an eikaiwa. I think Ive been here a fair few more years than you and Ive seen my fair share or JETs etc acting like complete tools aswell. So enough of the gross generalisations/implications already.

thanks for the tip, living in an area made up of mainly 50-70 year olds the Americans leveling the whole place in WWII does a lot more for my `reputation` than a few drunk morons though.

not sure what you are talking about here. I rarely drink and am actually a very reserved person. If the Japanese are so shocked by my behaviour word must have traveled far as Im in Osaka not Tokyo LOL although Im starting to understand why some ppl who havent met you might not hold you in very high regard.

whether or not u act like an idiot or not, drink then get drunk or not doesnt matter..

japanese ppl still come over to australia and do that.. its normal

its not like "drinking" and getting "drunk" and/or taking drugs is "never done" in Japan....

i dont see whats wrong with working for a eikaiwa, aslong as u take pride in what u do, whats the problem? you're doing your job, and hopefully you're doing it properly. its a means-to-an-end.... so what?

[m3gtr]

you obviously take the internet pretty seriously??? or have some people actually pissed you off in person? lol

I dont know what you're talking about (in the past or what not) but yeah..

and besides, japanese people already know what "aussies" are like, there are tonnes of them in australia doing study and work holidays visas, so its not like "westerners" are unknown to them, and if so.. most will soon know

but yeah, if you are in japan it would be different.

what examples of aussies making an ass of themselves are there anyways, im curious.... <_<

Ill give you a case in point.

A person from Adelaide, same place as me, lives in the same town as i do.

We were in the same pub one night when Australia was playing japan in the world cup. Japan lost, 3 - 1. I am friends with everyone in that bar. its my local watering hole. Id never seen this guy in there before. He proceeded to get up after the win and signal with his fingers...YEAAAH! Australia 3..Japan 1!!!! i dont need to tell you which finger he pointed. One of the locals at the bar is a bloke we call Fuji san. I also dont need to tell you why we call him that. He got up and i could see something starting. the mood was palpable. I stepped in and diffused the situation, thankfully, Fuji listened to me. I spoke to the guy and told him what an idiot he was to act like that. i was quite within my rights to do so.

the fact that he was from the same damned city as me stung even more.

In spite of this no one in the bar holds a grudge against me but if i hadnt done anything, well who knows...

yeah man..im the hero blah blah blah.

But more importantly i was ashamed and humiliated. I felt the heavy need to apologize for this guys reaction. Some in the bar were looking at me knowing i was aussie too and wondering what i was going to do about this. That guys behaviour directly translated to me.

We never saw the guy in the bar after that although i have seen him since outside..we avoid each other and thats fine with me. I dont need a guy like that around me. I dont need people around me that are going to embarrass me. Does this register or do you think im spouting nonsense again? That was a very real situation and way too close to my heart and home.

would you like to hear another story?

[m3gtr]

so any work I do doesnt count and any work you do does?? or are you saying I have to put hours in at the community centre for me to be able to say Im worthy of staying in Japan?

Not sure if this is directed at me or at anyone working at an eikaiwa. I think Ive been here a fair few more years than you and Ive seen my fair share or JETs etc acting like complete tools aswell. So enough of the gross generalisations/implications already.

thanks for the tip, living in an area made up of mainly 50-70 year olds the Americans leveling the whole place in WWII does a lot more for my `reputation` than a few drunk morons though.

not sure what you are talking about here. I rarely drink and am actually a very reserved person. If the Japanese are so shocked by my behaviour word must have traveled far as Im in Osaka not Tokyo LOL although Im starting to understand why some ppl who havent met you might not hold you in very high regard.

Ok streeter, youre taking this way too personally and i dont like the direction this conversation is heading. If you want to misinterpret what im saying, go right ahead. This conversation isnt going to go anywhere if you bear a personal grudge and start becoming antagonistic. You think im talking specifically about aussies but im not. being a teacher at its basic form is being a figure of respect, being upstanding. Why ruin your reputation as a teacher and a trustworthy individual over drunken rampage.

I also dont want to engage in the "ive been here longer than you" discussions. Its childish.

If you want to talk about this, lets. We are both here and im sure we are experiencing the same things. Ive never said my blah blah's better than your blah blah.

Perhaps your response spoke out of knowing within yourself that you know you arent like the story i told in the last post and going by that, its a good thing, dont you think?

Word travelling fast? It sure does. Good news travels at the speed of a snail, bad news travels much faster. You dont need to justify yourself to me, streeter. There are those out there that should take a good hard look at a) what they are doing here

b) why they are doing it

and

c) how it benefits OTHERS before themselves

Sure, i like women, fast cars and money but we both know Japan is an ocean deeper than that. Im sure you understand this. Unfortunately, others dont give a shit.

thats the truth and it bolis my blood.

You want to talk about Hiroshima and Nagasaki? Dont get me started. Have you been there? I have, i felt the sorrow and i cried.

call me a poof. Its your perogative. Maybe i care more. Who knows. maybe you do...

[Streeter]

Your right, I must be misinterpreting what you are saying.

This thread is about Nova and possibly about other eikaiwas... not sure how we got off on this tangent.

If you arent associating bad behaviour or lack of respect with teachers from eikaiwas, I apologise, youve lost me LOL

[Laurence]

http://search.japantimes.co.jp/cgi-bin/nn20071027a1.html

Just about done now... the President has done a Christopher Skase

So my six weeks of charity work is now at an end.

[akeenan]

i still cant understand why people kept working after they didnt get their first pay check . . . ?

on a brighter note. i was at a bar last night and saw the AM who always picked on me and gave me attitued when I first came to Japan and was working with Nova. He was sitting by himself and looked like he had been there for some time and didnt look happy at all. So i went over and had a lovely chat and enquired about his current job and to my suprise he didnt have one as NOVA had closed up that day . . . . sweet revenge... sorry guys who are in the same boat though.

[m3gtr]

http://search.japantimes.co.jp/cgi-bin/nn20071027a1.html

Just about done now... the President has done a Christopher Skase

So my six weeks of charity work is now at an end.

You work for NOVA? you poor bastard...

what are you gonna do now?

[m3gtr]

i still cant understand why people kept working after they didnt get their first pay check . . . ?

on a brighter note. i was at a bar last night and saw the AM who always picked on me and gave me attitued when I first came to Japan and was working with Nova. He was sitting by himself and looked like he had been there for some time and didnt look happy at all. So i went over and had a lovely chat and enquired about his current job and to my suprise he didnt have one as NOVA had closed up that day . . . . sweet revenge... sorry guys who are in the same boat though.

i hope you didnt take any satisfaction from it. You could be on the same receiving end at some point.

shit..i wonder how many people on this forum have been screwed by NOVA..