James at Japan Probe reports the news that NOVA, Japan's largest chain of English schools suffering from a deepening financial crisis, has postponed paying its English teachers this month.
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As a BT with Nova I can reveal that today, Nova got an injection of cash as all Titled Instructors were finally paid (2 weeks late) and also Japanese Staff both Part-Time and new Staff were also paid today.
It is believed that NOVA received quite a large Bank Loan today! Now surely if Nova was about to go under, no bank in their right mind would assist with a loan payment, now would they?
My daughter has been with Nova for about a week and a half. She keeps asking me what to do,stay or come home?She is running out of money and is very nervous about how stable Nova really is. So as a parent of a Nova employee do we get her a ticket home or tell her to stick it out?? Help
I can’t believe you deleted my comment and poem … what was wrong with my comment. censorship sucks!
My nephew is a Supervisor in Japan and he has phoned today to say that he has just been paid.
If nova really have had a big cash injection from a bank then hopefully the situation will now stabilise.
Its about time Nova made a statement to the staff though, letting them know exactly what the position is so they can live their lives whatever the problems instead of existing from day to day because they do not know if they are going to be paid next month.
I am new NOVA instructor, I arrived at the beginning of September. I was never informed of NOVA’s difficulties until my roommates told me. I can confirm that AT and BT were paid (although late) as for the J-staff last I heard they had no been paid. I work in Tokyo so perhaps the J-staff outside of Tokyo got paid.
Anyways as a new recruit I am very worried and so are all the instructors that I have spoken to. Everyday at work its the only thing that we talk about: Is NOVA going under? Will we be paid? And what will we do if NOVA does not pay us? From what Im have gathered many people have quit, called in “sick,” or started to find new jobs. However, new NOVA recruits as early as 28 September 2007 arrived at my school. Apparently new recruits are still coming in October!
In addition, I know that many of the new recruits have not received their salary advances, so if NOVA did get an infusion of cash why haven’t the new recruits received their pay? I am considering going to Korea if anyone has any suggestions or useful companies that I should try applying for I would greatly appreciate it.
Everyone seems to be waiting for Oct 5th. It is really going to be a BIG day. As a matter of fact the Oct 5th day has been in Japanese language papers for over a week. It is a very important day for Nova. Last week the JASDAQ, Japanese version of the NASDAQ, has ordered Nova to make all it’s records transparent to investors by Oct 5th. In other words, they have been ordered to open the books for all to see or be booted from the exchange. Nova will go super nova on Friday. When Mr. Saruhashi commented that Nova teachers and staff will not need to worry about their pay from that day on, he really wasn’t kidding!
I don’t understand – how does opening the books ensure that teachers get paid? I am a recruit and my boyfriend and I are scheduled to arrive October 31 and just found out about Nova’s problems four days ago. This is not a stable situation to come into. Do we eat the cost of canceling our flight and stay home? What are the options?
My mother is currently working in the multimedia dept of Nova in Osaka. She is very concerned for the new teachers that have arrived in the last few days. Their career may be over in a matter of weeks. Mum’s payday is 15 Oct and she has told me that if her pay is not in the bank on that day she will catch the next flight back to Australia. Apparently there was a court ruling earlier in the year that Nova had to keep employing new teachers, butm they are not allowed to sell new teaching contracts to prospective students. Can anyone clarify taais for me. I believe the last dept to under will be the multimedia dept because it appears to be the most important to Nova cash wise.
listen tracy nova is going under so just throw ur mom a welcome back to oz party
Well Eileen,
Recent articles in Japanese papers are now showing Nova owes over 10 billion Yen, that’s approximately 100 million dollars, to students whom have canceled their lessons in the past few months. The figure was less than half that only a week or so ago. It seems, however, that Nova is not able to pay this money at this time. Here is an outdated link showing backed up expenses before things really became out of control over the past two weeks.
http://ir.nikkei.co.jp/irftp/data/tdnr2/home/oracle/161/2007/181803e/181803e0.pdf
Nova will deduct money from your salary to pay for your accommodation. The problem facing people now is Nova not paying landlords the rent money they are entitled to. Last week it was reported that over 200 teachers were being evicted. This week it was just reported in the Japanese newspapers that another approx 300 people, from various prefectures, have received their eviction notices. Some landlords, whom have been interviewed, are now saying they are giving eviction notices on the first late payment as they believe Nova is finished and they are worried they shall be left empty handed.
Two weeks ago an article mentioned that Nova was cutting 200 school locations. It was hoped that these were planned cutbacks. It is now understood that these locations were rented and rental payments hadn’t been received. It seems they really were evictions.
Another article stated that all banks in Japan have cut Nova’s credit line. Some banks , whom have lent money to Nova in the past, are finding it troubling that they cannot contact the Nova president.
Two or three months ago, HIS, one of the largest travel agents in Japan, was contemplating something with Nova. I’m not sure what that something was; bonds, stocks, or even a buyout. After looking at Nova’s current situation, as of that time, they quickly backed out. I believe the mere report of them talking with Nova sent their stock prices down. I wouldn’t plan on a buyout.
Nova must give an updated report to the JASDAQ on Friday. http://www.jasdaq.co.jp/other/kaizenhoukokusho4655_190921.jsp
If it is a proper report, as requested by the JASDAQ, the news reporters and current investors will be scouring the numbers thus setting off an even greater panic. Hopefully at this time the current president of Nova shall file for bankruptcy thus allowing teachers and staff to apply for unemployment benefits. At this point everyone shall not need to worry about their salaries from this time forward, as their will not be any salaries.