Media Reaction to Nova's Bankruptcy

Ever since METI punished Nova in June, the Japanese press has been faithfully reporting on Nova's problems. What was missing from the equation was coverage on TV. Nova garnered little coverage probably because it wasn't scandalous enough. It's not a juicy enough story when compared the scandals of the Defense Ministry and issues of food safety.

Now that Nova has collapsed, its president is nowhere to be found, and its employees and students are out of thousands of dollars in salaries and refunds, the story has been all over the television.

Here's a summary in English of Nova's end (embedding disabled by request): http://www.youtube.com/watch?v=DzlBPtqTlv4

Here's another review in Japanese. The key point in this clip is that there are no refunds forthcoming anytime soon for the students. If they aren't getting any money, it's likely that the teachers won't be seeing their salaries for a long time. Louis Carlet also sums up the predicament the teachers are in: they've been working without pay, they can't pay the rent on their apartments, they can't pay the utilities, and finding a job isn't easy, either.

Another summary. This one shows the plight of the teachers—they are powerless to do anything since they have no money. The clip also mentions that although Sahashi announced that he had raised capital, he apparently didn’t bother telling the board of directors, and this lead to the coup d’etat on him. The clip finishes with METI washing its hands of the mess saying that Nova should have acted faster and should take action in a way that does not further inconvenience its 400 thousand students. Too bad Amari forgot to mention inconveniencing teachers. Maybe if the teachers marched on METI, the Ministry of Health, Labour and Welfare and possibly the Ministry of Foreign Affairs, they’d notice.

A report from Sapporo on students not getting refunds:

As you already know, Nova is looking for receivers to help rebuild the company. The potential receivers named are Aeon Co. Marui, Rakuten, and Yahoo Japan.

Marui, however, has already said it’s not interested:

The plight of the teachers has not been forgotten, however.

The video mentions efforts of the British and Australian embassies to inform their citizens and help them get out of Japan. Information for Australians can be found ">here. Information from the British embassy is here.

Information on flights home has been brought up in this thread. For Australians, fares from Quantas can be found here.

Update 10/28 Information for New Zealanders employed by Nova can be found here. Also see the message from Lord Percy on assistance for Canadians.

Update 10/29 The United States embassy also has information for Nova employees here.

The Asahi Shimbun is reporting that Rakuten and Aeon aren't interested in Nova. The article says that statements by the heads of both companies amount them flatly refusing the overtures of Nova's trustees. Aeon president, Motoya Okada, said that despite the exposure of Nova opening schools in AEON shopping malls, he hasn't given bailing out Nova any thought. Rakuten president, Hiroshi Mikitani, stated that he had no idea why Rakuten's name came up as a potential suitor. What a kick in the teeth. That just leaves Yahoo left out of the four companies named. Any bets on when they say "no thanks?"

イオンの岡田元也社長と楽天の三木谷浩史社長はそれぞれ29日、会社更生法の適用を申請した英会話学校大手、NOVA(大阪市)の支援に否定的な見解を示した。同社の保全管理人が支援を要請する候補としてあげていたが、「門前払い」となる可能性が出てきた。

イオンの岡田社長は記者団に対し、「当社のショッピングセンターにNOVAの教室が入居しているから名前が挙がっただけなのでは。まったく考えていない」と強く否定した。楽天の三木谷社長も記者会見で、「何で名前が挙がったのか、正直意外だ。検討するには難しいと思う」と述べた。

Article from the Mainichi Shimbun:

Rakuten Inc. and Aeon Co., both suggested as potential companies to bail out critically endangered English conversation chain NOVA Corp., ruled out stepping in to save it Monday.

NOVA's 40 billion yen in debts and the likelihood any savior would have to taken over them appears to be scaring away saviors.

"It's extremely difficult even to think about taking this on," Rakuten CEO Hiroshi Mikitani said.

Aeon's Takuya Okada was equally bearish about NOVA.

"We haven't been asked to do anything and we haven't done anything," he said.

NOVA filed for protection from creditors last Friday and is currently in the hands of receivers.

ShareThis

Comments

LAST NIGHTS NHK REPORTER

as TRON stated earlier, some twit on NHK 9 showed their true colours and stated that it was the students who are the biggest victims...(i thought it was the lady reporter..but I'm not sure now, having been so pissed off at the time)

heres a template and url you can use to disabuse these jackanapes of their misconceptions

http://www.nhk.or.jp/nhkworld/english/about_e.html

Last night (October 26th), NHK reported the closing of all Nova schools in Japan. After, you featured a report about a young man who was near destitution due to Nova's closure, and failure to pay salaries.
After this report, you reporter declared that the true victims were the students!
It is absolutely inexcusable for this reporter to send that type of message. Most of us teachers sympathize, and like our students deeply, but in truth, they may only lose DISPOSABLE INCOME. The Japanese staff and foreign teachers have lost LIVING EXPENSES. Further, many of us have sacrificed much in coming here, in terms of time apart from family, careers in our countries, to help people in this country.
I personally demand a retraction or apology from NHK News.
Sincerely,
Insert Name Here
Somewhere In, Japan

Click on CONTACT at the bottom of the page and it will pop up a window where you can send in your comments.

Apologies to Tron for stealing his thunder on this..he got the url

Here's something to read and think about!

http://www.ontology.com/retrograde/about.html?v=1.2
Take a look at the dates, "Mac" users knew NOVA was coming down!
Also, click on the "Credits & contact" button.

Don't forget the Canadians!

More information from the Embassys here: http://www.letsjapan.org/forum/viewtopic.php?t=255078

Hey Nova People!

Why not go to the press with your stories? Make sure the citizens in your countries are aware of what has happened so that others are careful and they do their proper research before coming over. I fear for the new ones flying here in the coming days, weeks, and months without being aware of how saturated the industry is at the moment.

Also, by bringing up your stories, you may get more assistance from various sources like the airlines in your countries, the government, and maybe even individuals or organizations. Who knows?

At the very least, you would be making people more aware and shining a bigger spotlight on the whole mess.

And chin up! You'll get through this one way or another. Despite some awful posts out there, many are on your side and feel deeply for your current situation. Hell, it could happen to any one of us under the right (wrong?) conditions.

Work together, help, and stay in contact with each other.

Good luck, people!

Word of advice

Might be a good idea to tone down the language and comments a wee bit. You have no idea who might be reading this stuff and using it in their news articles. You'll only make yourselves look like 'cowboy teachers', discredit your arguments and lose sympathy. That won't serve you in the long run.

Comment made on the news

I watched that news program and the comment really made me sick. After showing some poor bastard who can't afford to eat, pay his rent, or get a plane ticket home the broadcaster has the nerve to say "the foreign teachers have it hard, but the students are the worst hit because they have so many worries (not quoted word for word". I feel sorry for the students too...............but you actually have people in this country right now who don't even have money to eat because a Japanese company has lied to them and drawn them into this country and then refused to pay them for the last 2months! Come on people! If this happend in my home country you would be having people left and right offering to set up programs to help the people who can't eat get food and general living necessities..........and help them out to at least get home. Sure, the students were ripped off but the teachers were not only ripped off they were suckered into coming to a foreign country and now can't even afford food! To all the foreigners here......and people thinking of coming here they should watch that English clip offered above several times..................this broadcaster said this on NATIONAL tv and no one even batted an eye brow. Believe me, foreigners here are NOT on the same page as everyone else.......they don't get treated the same and don't have the same rights. You aren't hearing from the teachers suffering the most because they don't have access to computers...........they can't even afford food how the hell are they gonna pay an internet bill.

P.S.
Making people sign-up and register to post comments on this forum has killed the dialogue. It was much more interesting when people could talk easily. Sure, there were some assholes but you could easily ignore the irrelevent comments.

I TOTALLY AGREE

i only signed up with this stupid handle cuz i thought this was where all the action is!...where did everyone go?

unless they are too tired from trolling for the last month.

i like this place better than gaijin-pot..that place has some seriouly miserable old wankers..

stay on top of it all everyone!..things can ONLY get better..knock wood.

he's alive

I just saw sahashi coming out of a 7 and i- holdings in shinsaibashi! he’s alive i tell ya.

he's alive

I just saw sahashi coming out of a 7 and i- holdings in shinsaibashi! he’s alive i tell ya.

SOS...another problem for NOVA instructors to worry about

It seems like everyone has stopped checking this site and talking about updates on NOVA.

I hope some people are still reading and see this message. Also if you have helpful info let me know.

For those of you who are still employed by NOVA there is another possible problem you have to deal with. If you are on JMA insurance then you need to find and secure other insurance ASAP! As of the end of the month all JMA insurance policies will expire (or be cancelled). In other words you will not have any insurance coverage which is a major problem(s). Even if you are on a tourist visa you need some sort of travel insurance. Also it could be a problem regarding looking for a new job too.

According to someone at JMA there is going to be some info posted on the NOVA website regarding all this sometime this afternoon. As of yet (about 3:30pm) it is not there yet.

If anyone has any credible info or suggestions on this please let me know via this website.

Any word of...

Any word of Sahashi?
Sponsors?
Anything?

Regarding helping the teachers

The Japanese government is allowing its own citizens to starve to death and the people are blaming the dead for being too lazy to find a way to earn a living. Given that they don't want to help each other, they are hardly going to step in and help a bunch of foreigners who may end up homeless or without food.

It seems to me that rather than spend time and energy complaining about what the Japanese aren't doing to help these people, we should be helping them ourselves. The foreign community would rather complain and gloat about the much-desired death of Nova than to do anything constructive for stranded teachers. There is plenty of energy to organize new sites to keep everyone up to date on the latest news and to allow people a place to make their snide comments but no one has bothered to set up a collection or means to help people...yet, we say the Japanese should do what we can't be bothered to do.

Oh Dear, Looks like the end

Oh Dear,

Looks like the end of the line for Nova. Some of you seem to be surprised that the media have portayed Nova students as the victims in this business. I'm curious as to who will be the most out of pocket on the whole? I think it is scandalous that the company didn't pay it's employees but from a broadcaster's perspective it does make sense to focus on the largest group to loose out in this whole sorry saga.

I do feel sorry for people who have just recently moved to Japan to work for Nova who will not be able to claim unemployment insurance but do you not think that if you are going to live out in a foreign country it might be fiancially prudent to at least have the cost of a ticket home kept in a safe place?

The world does not owe you a living. It is unfortunate that a large company has gone belly up leaving a lot of people out of work. However, I think that instead of complaining about what a poor deal you had at the hands of the media and what a tool your former boss is, getting you arse in gear and doing something about your situation is the way forward.

You were all big enough to get on an aeroplane and fly out to Japan. It's now time for you to either be big enough to find a new job or go home. Nova has not treated you very well but I think that Japan, as a country, has been good to most of you and youo would do well to remember that.

Re Comments: My bad

P.S.
Making people sign-up and register to post comments on this forum has killed the dialogue. It was much more interesting when people could talk easily. Sure, there were some assholes but you could easily ignore the irrelevent comments.

This is my fault. I inadvertently changed the comment settings. I saw your post this morning and quickly changed the comments back to the way they were before heading out the door, but they all ended up in a comment queue. Everything should be working fine, now.


The significant problems we have cannot be solved at the same level of thinking with which we created them.
-Albert Einstein

Shawn

Japanese Health Insurance is

Japanese Health Insurance is easy to get here. It is cheap and works very well. Just go down to your local Government building and tell them you want to sign up. It costs me about $8 a month.............covers everything.......medical, dental, vision etc. Much better than the U.S. I don't know what's up with Nova..........I'm assuming they ran a scam like most English Schools requiring teachers to sign-up with "their" insurance provider and they get a cut of the money. In Japan you are REQUIRED to contribute to the national health insurance program unless you are a rare exception. Only fucked up thing is you must pay back money.........for every month you were in Japan and didn't contribute to it you must pay that money to get the benefits...........that can hurt quite a bit.

Sorry, thought I deleted my

Sorry, thought I deleted my first post.

self responsibility

I think some of the Nova teachers crying about their situation should admit their mistakes first if they want more sympathy.

You are only a couple weeks after the date you should have been paid. Where was your Plan B? I have always found it ridiculous that so many people live paycheck to paycheck, but I'm not going to get into that. Especially when living in a foreign country, you should always have something set aside for a rainy day!

You were working for a bad company to begin with. Why in the world did you trust it so much? English schools in Japan have a history of this kind of crap. There were warning signs for a long time. Especially when salaries were being paid late, that should have been a sign to look for a job, save every penny possible or making some kind of plan for Pete's sake!

Obviously, some people get in binds when it is no fault of their own, but a little bit a maturity and self responsibility beforehand would have made a big differenc.e

victims

If you had watched the news story you would have seen that they chose to focus on the plight of a teacher rather than a student.
Im curious as to why they did that.....

You gotta remember some

You gotta remember some people have big college bills, credit card bills, etc. from back home. Sometimes it's not possible to put money aside...........especially when you factor in that you are living in one of the most expensive countries in the world. You pay huge taxes and live in a shoebox (most likely). But hey, thats part of the deal of being here. It's a risk. I lived very rough for a long time and came out on top...........I made my own business here and was successful. But, it's different for everyone.

English information..

It appears some of the info has finally been translated on the nova website http://www.nova.ne.jp/ .

Haven't read it yet.

It's true.............the

It's true.............the English Industry here is shit. I don't care where or who you work for..........you are not safe and your job is not secure. I don't care if you work at a shitty little Eikawa or a University.........they can snatch the rug out from under you at any moment. You want proof? Do some research on it. The web is full of English teachers getting ripped off...........fired at Universities because they didn't want to give the foreign professors the same benefits as the Japanese professors........or simply because the foreign instructor got too old and needed to be replaced with a younger, more energetic teacher. I've been here quite awhile and I have seen it and experienced it..............you are not "safe" here in any situation.

Gaijin v. Gaijin and Nova blame game

After being in Japan for over 10 years and worked 10 years ago for NOVA , I find it amazing how some gaijins are calling other gaijins NOVA trash, or blaming teachers, or lashing out at our own gaijin kind.

The big picture is this.
- All EIKAIWA companies try to get away with the least possible benefits for gaijins taking advantage of their lack of knowledge. All Japanese in Eikaiwa companies will blame gaijins for everything wrong about the industry.

WHY ARE Gaijins still not clear on VISA sponsorship, on company housing, on unemployment, etc..? Its our own fault here.

Whose the genius that forgot to put the minus sign in the cash flow forecast for cancellations? When will the next NOVA come up? Gaba? Their stock price is almost 50% lower than their IPO.Too bad there were no gaijins to blame for that one. I thought they would spin something about bad teaching forcing cancellations. Thank god they didnt.

Is our not coming together on these issues is like watching one black gang spray down another black gang in LA and then hearing them call out descrimination????

Why do think gaijins had to complain about not getting proper health insurance for years before the change? What?? A gaijin with shakai hoken? a GAIJIN? no..gaijins are gaijins and shakaihoken and nenkin are for Japanese.

Watch the original planet of the apes and figure that out for yourself.

Rember that line...Bright eyes thinks he can speak!! Look he is mocking us!

And I never saw any NOVA staff out their striking and complaining about their salary except for being interviewed with their faces all blocked off because they are scared of being seen??? Afraid of being called a traitor? What is that all about? Blocked out faces and voice changing?

Well..all in all, gaijins for gaijins, Japanese for Japanese, and Ape does not kill Ape

Deluge!

I have lived in Japan for the past twenty odd years and run a small English school at my home, all by myself. Since three years ago my student count has gone down by 75%. Not all of a sudden, but a gradual and steady decrease! Plan B: Advertise some more. Costs money! No calls!...ate away all my savings, one student joins, two quits. Again and again. Sometimes it could rain for a long time! I need to Plan C, D, and E. Need to keep afloat!

I've done the same. Did

I've done the same. Did very, very well actually. Money is good, students a pleasure to teach (most of the time). But, now something in me is calling me back home to the States..............and I'm outta here. I made it in Japan on my own and know I can do it again if I ever want to. Fuck the Japanese companies.....................do it on your own. But be prepared to suffer for a long time................and your fucked as far as a visa goes unless you're married to a Japanese or have a shitload of start-up money.

The problem with trying to

The problem with trying to get onto the government health care system if you have been here a while is that you have to back pay all the payments that you didnt make before you joined. So the longer that you put off joining, the less worthwhile it gets to join it. And that is one of the things that the company never tells you when you first get here. And despite the fact that you have more coverage under the government system in terms of optical and dental, there is still a shortfall that you have to pay that the government does not cover, despite the premiums that you pay.

Nova conned it's employees

Nova conned it's employees on healthcare. My first English School here did the same to me...........but I got educated and dropped them quick. Yes, you will have to pay back for the time you have spent here and not paid into it...........but the benefits are worth it. Plus, it is illegal to be here without insurance.........you will be forced to sign up anyway. If you're gonna be here a long time it's must.........if you're just over here fuckin' around who gives a shit.

High horse

That's a mighty high horse you're on there, so how about you come down for a little so we can chat?

Some people are not in a position where it has been possible to save money (eg college loans, children, divorce payments).

Let us know how you go with

Let us know how you go with C, D and E then.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Post new comment

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <p> <em> <strong> <blockquote> <ul> <ol> <li>
  • Lines and paragraphs break automatically.
  • Pairs of<blockquote> tags will be styled as a block that indicates a quotation.

More information about formatting options

LJ is currently using a spam filter, which may eat legitimate comments, particularly those containing URLs. If you are having trouble posting a comment, email LJ.