Gateway21 Files for Bankruptcy

Another sign that the eikaiwa industry is still in trouble: Gateway21 plans to file for bankruptcy protection with debts totaling 1.29 billion yen.

The Asahi Shimbun:

Gateway21 Co., an education broker that sends Japanese students to overseas language schools, plans to file for bankruptcy protection and may be unable repay students 950 million yen ($8.93 million) in advance payments, sources said Monday.

Gateway21, whose total debts will likely reach 1.29 billion yen, has already suspended its business operations and shut down its website.

At first glance, this looks like a hard-luck story about a company in an industry in decline, but consider the following passages:

A 27-year-old corporate worker in Aichi Prefecture said she paid about 1.3 million yen in advance payments to the company for a program to study in Canada for a year from January.

After discovering that the company's website has been shut down, she visited Gateway21's office in Nagoya only to find a notice saying it has suspended business operations.

"I cannot believe this because the company has solicited students until very recently,'' she said. "I now need to confirm whether the payments can be fully returned.''

At the company's headquarters in Tokyo's Shinjuku Ward, a business-suspension notice dated Sept. 21 had been put up at the entrance.

The notice said the company "has failed to raise funds to pay overseas institutions and became unable to provide services to clients.''

The Tokyo Metropolitan Comprehensive Consumer Center said it has received six complaints from Gateway21's clients since April this year, including a case in which a student had trouble getting advance payments returned after canceling a contract.

The parallels to NOVA's failure are unmistakable. Just as with NOVA, there were complaints over the cancellation of contracts and refunds after students had paid large sums of money up front. And while the company was strapped for cash, it was still taking in new students.

I don't know if Gateway21 operated with the same degree of malice that NOVA did, but the lessons of NOVA's collapse have yet to sink in with a lot of people. The tens of thousands of dollars paid up front by the students are probably gone forever.

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Comments

There's been too many

There's been too many businesses, especially the ryugaku/eikawa businesses that have been able to make money with poor business practices.
I'm quite sure the CEO of gateway21 just happened to get a large bonus in August....

It's just so sad to see a

It's just so sad to see a repeat story occurring so often. It's a basic premise that if you take money you should have resonable certainty in being able to deliver the service you are receiving the cash for!!! What is wrong with the employees as well as the management??

The culture of dishonesty

The culture of dishonesty that infects Japanese business practice is appalling. I don't know how the Japanese put up with it.

Insanely bad management

They probably invested all their customers money into Lehman brothers bonds to lose it that rapidly.

Otherwise I cannot see how you can run a study abroad agency (8000 students per year, that is big for a SO agency, but in the business world its just barely a medium sized company) into the ground to the tune of 1.29 billion yen.

Sure the study abroad market in Japan isn't good, and not getting any better, but they still had cash flow.

In down times you shrink your business ; fire redundant staff .... and get rid of offices in expensive locations. And cut down on your advertising. You don't keep spending like a drunken sailor.

This is why...

The Japanese probably look at America, Britain, Canada, etc. and think "well at least this place is not as bad as those shit holes".

A bit misinformed

You're a bit misinformed, if you think Japanese people "put up" with stuff. Hence the en mass refusals to pay NHK TV licence fees, or their refusal to "put up" with taxes that are anywhere near as exhorbitant as those in the West.

Don't forget, it was students refusing to "put up" with the stuff Nova was trying to pull, that played a big part in bringing Saruhashi down.

Voting for the same political

Voting for the same political party for 50 odd years shows that do 'put up' with a fair bit. Guess lying and dishonesty is just expected.

Agreed mahoney! You can

Agreed mahoney! You can continue that list with: very few to no vacations taken longer than 4 or 5 days, the complete lack of complaints received at the labour office regarding working conditions, taking a sick day as a `paid HOLIDAY` (hahahah that one makes me crack up!!), yada yada yada... if only students were encouraged to actually fuckin study at university and learn something.. then companies might actually have competent individuals starting up and operating businesses, rather than the bunch of clowns that try (and often do) pull fast ones with their employees...

Sieve standard arguments

The students who go to university here, and don't study hard are, like in the West, generally arts students, with only a few hours of classes a week. Science students can't get away, without putting the hours and the effort in. The educational attainment tables for Japanese students piss all over Western students, especially in Science and Technology. Where the fuck do you get your information? The pub?

Why do you come here, and diss us, your hosts, with these tired, borderline racist urban myths. This is a great country, and if you don't like it, apparently, they have an open-mic sessions, for foreigners, just near the black vans outside Yasukuni, if you want to air your grievances....

All the information I post

All the information I post has simply been passed down to me from either students, or are my own or other teacher friends observations in their own public schools they teach at - and of course sourced material. May wanna check out a book called Dogs and Demons (or Lost Japan) by Alex Kerr (well sourced, footnoted), especially the EDUCATION CHAPTER. You may also wanna read his PROLOGUE AS WELL.. hell, READ THE WHOLE BOOK!

Of course the education system outside of japan, in the states for example, has problems - different problems. LOCK DOWN, metal detectors, drop outs, school shootings, its kinda sad... And the education attained is less standarized than in Japan, which means you have more variation in the statistics, as opposed to everybody here, who mostly study the same thing right up till graduation. As for higher attainment levels, I agree in some part - but thats not education as its the culture. Being singled out here (either the stupid one or the highly intelligent one) often makes u feel like an outcast. And so, I think, on average they do relatively well up to high school, but again... where are the geniuses?! Where are the noble prize winnners?! Ask yourself that.. Research it if you want, the stats are there. Unfortunately in Japan there tends to be a lot of misinformation that gets put out and/or shown to the outside world as being true (real estate values, goverment spending expenses - may we say weekly government minister scandals???)

I do believe in cold hard facts and real information, and sometimes the truth hurts. I believe Japan USED TO BE a great country. Riddled with deceit and corruption (mostly from the top down), people have come to take this as the norm here. Make of this as you will...

'shou ga nai' doesn't cut it

Regarding most of the comments I've read here about Japan and its current problems, most stem from the complacency of the Japanese as consumers. There is no anger, no fury, no mass protests about much of anything. There should have been organized protests during the NOVA free fall by pissed off students outside the Shinujuku HQ and in Namba but... 'shou ga nai', right? I give credit to the Koreans and Chinese, when they have been wronged and they are pissed, they WILL storm the gates and voice their displeasure.

The second problem stems from Japan's useless and paralyzed political system. A PM that changes every 6 months? "Dismantling the Diet" and holding elections... again? Politicians here do one thing at election time: they drive around in cars wearing white gloves, smile and blare shit from speakers. There is no public debate, no accountability, no solutions. I agree with the last poster, Japan USED TO BE a great country. As a country, Japan is like a tired old man propped up in his wheelchair, pissing his pants hoping the end comes soon.

When you have an ELECTED (by the people) leader who is looked at through the lens of solutions, a working plan and through the lens of real accountability, you might BEGIN to solve some of the problems. Japanese are wonderful people and it's my pleasure to be a guest here, but they seriously to take up arms and DEMAND more from their leaders. Have you ever seen a protest by hundreds of thousands of irate Japanese surrounding the Diet building or PM's residence? I didn't think so. "Shou ga nai"...

Thus, endeth the sermon.

Dear Grandad...

"Japan USED TO BE a great country. As a country, Japan is like a tired old man propped up in his wheelchair, pissing his pants hoping the end comes soon"

And so are you. You sound like my Grandad. Japan is GREAT NOW! I mean what do you Western World Misfits want of us??? Shall we re-invade Manchuria? ReNationalise Shinto??

Get a life. Yeah, the politicians suck, but at least we know it - hence the low voter turnout. You suckers turn out at the ballot box every time, and it doesn't change shit!

If you don't like it here - go home. Stop whining. We don't do whining here.

Wow. Must be a troll, or

Wow. Must be a troll, or simply u are stuck in a shitty ass situation with some J-witch of a wife dude! Ben and I here are simply pointing out reality. Ive met many great students here, but shit, like was mentioned above, people take it up the ass here day in and day out and never make a stink. Whining.. well yah, perhaps somewhat, but at least im not afraid - and am allowed - to have an opinion. Communication and expressing thoughts and feelings - something which does tend to lack here, hence the lack of psychiatrists/councellors - is good therapy, in my opinion. The world is constantly in transition... and, sadly, countries that wish to maintain strong economies do need to change with the times...where will Japan be in 30 or 40 years? Where will your pension be buddy? I know where mine will be - NOT HERE!

Ahh, a FOB (fresh off the boat) newbie

"Stop whining"? Your post in response to my post was one continuous whine! This thread is about the changes in the eikaiwa industry-- none good. 'Great country'? And you've been here how long and you're comparing it to when? After the novelty of being 23 years old and finally working full-time (assuming you are) wears off, get back to us.

In the meantime, here's what you do, go get an adult, bring them over to your PC and have them read and explain my original post to you. You seem to be the only troll on this thread that doesn't "get it".

Some people seem to be hyper

Some people seem to be hyper sensitive regrading any criticism directed at Japan or the Japanese. I personally love the place and spent a good amount of years their happily.............it aint perfect though! A critical view of the world around you is very healthy!!!

I am an Aussie......happy to be back in this great country. Like Japan, it is far from perfect though. We have our own issues down here too.

Don't take criticism of your chosen home personally guys. Eat your Fujiya cakes and be happy!

totally a troll......

totally a troll...... Japanese people don't speak English that well....

How...

do you know???

What? NO Japanese speak native level English?

BTW How's your Nihongo?

Sure sign of a troll...

"Wow. Must be a troll, or simply u are stuck in a shitty ass situation with some J-witch of a wife dude!"

That sounds a bit Troll-ey.... Calling someone a troll just because their opinion don't fit yours.

If it looks like a duck,

If it looks like a duck, walks like a duck and sounds like a a duck, it must be....

Aaah, the Japanese apology

Deep, solemn bow, heartfelt 'gomen nasai'... but where's my fuckin' money, Gateway? Like NOVA, they were taking in money up until the day they declared bankruptcy. Oh, what's the word I want for this situation.... fraud! Will the CEO, CFO, etc. of Gateway 21 see any prison time or punishment? I doubt it. Like the banking crisis in the U.S., I wonder which eikaiwa or English-learning business is next to leave customers stranded.

threw himself on the ground in apology!

Gateway 21 President Fukui wasn't kidding about being sorry-- he'threw himself on the ground in apology'! Take a look:

http://search.japantimes.co.jp/cgi-bin/nn20081006a2.html

ah, yes. precision

Get a life?
Stop whining?

You clearly must be the master debator of your club.

complacent beyond belief

"Gateway21 officials repeatedly apologized to them."

The story's over, folks. They apologized.
Next, please.

Some of you are a little

Some of you are a little ignorant.
It's easy to understand why some people are/have become oversensitive -- you made them that way through your (the 外人 online community in Japan) constant trashing of Japan. If you want a good example, look no further than the shitty community of Japan Today. Nonstop bitching in almost every single article without fail. I've only a mild interest in Japanese culture, but shit, even I eventually got annoyed at the amount of bitching. A lot of you (once again, as a collective whole) seriously do come off as a whiny bunch. I'm glad I'm not a part of this online community. By all means, continue to circle-jerk yourselves...god knows you love doing it :/

You're wasting your time, Mike

They're the biggest bunch of self pitying losers, EVER, on these threads - you can try to point them in the right direction, but they won't thank you for it.

Ozzie Wanker

Shut up Bruce, and toss another shrimp on the barbie, while all your approaching 65's, soon to be retirees, back in Kangaroo Land lose half of their retirements savings, due to their superior financial wisdom. Oh, tie me kangaroo down, sport, tie me kangaroo down. Ozzie dickheads.

OK, now we're 'outing'

OK, now we're 'outing' posters, are we? 'Ozzie dickheads'? I have to take issue with that. Where is the civility?

For the record...

I'm British.

I just like sharks.

You are right to take issue, Ozzie.

Take Issue

Australians are the worst whiners in the world, Bruce. You know it, I know it, they know it. They know so little, and yet they talk as if they know so much. That is why they rise to the top in places like Eikaiwa. That is why the rest of the world calls them OZZIE DICKHEADS.

As the former Prime Minister of Australia, Bob Hawke, once said, in reference to Australia, "Australia is nothing more than a blob of shit on the asshole of the world".

His other claim to fame was being in the guiness book of record for skulling beer.

Yep, OZZIE DICKHEADS alright.

Once again...

I'm British.

I am laughing my head off, now - because you, like so many other losers here fly off the handle, when goaded, becausde your life is so pathetic and it's the only release you have.

One again, and I swear this...

I'm British.

Sincerely,

Bruce.

the british used to be

the british used to be respected but in about 10 years they will just be another state in the EU.I think that our grandkids wont even know they were seperate in about 50 years. I mean even Japanese are surprised that England is a country. They only know Britain.

Fly of the handle?

Hey Bruce, you sound like that Mackorello nutcase that used to hang out on NTU, before he got banned by yahoo for repeatedly posting about masturbation.

Yep, sounds like Whacko alright !

You hit the nail on the head. His posts have the signs of Whacko Macko plastered all over them.

And tell me Bruce, what is your release? To hang out in Let’s Japan, because you got booted from your favourite yahoo haunts, and continue your habit of ridiculing everyone else, while you enjoy your successful English teaching career?

Ha!

Well, at least you have given up “boo-hooing” about everyone letting you know what a wanker you are, and have now opted to crow about yourself, instead.

Evolution is an incredible thing to witness.

Whacko still at it?

Is Whacko Macko still around? I heard that boo-hooing cry baby got smacked out in a Snack Bar by a Japanese guy, after rubbing up the Mama-San, and then fled home to Mother England.

Terrence of Kent

I can't speak to what is

I can't speak to what is thought of the British, but America is more hated around the world as time goes by-- Bush, Iraq, its imperialistic tendencies, going where they aren't wanted or invited-- and now the worldwide economic meltdown caused chiefly by American creed, incompetence and lack of government oversight and regulation. It must anger and worry Americans that China's star is rising. I'm American, too.

Hmmm. Interesting....

Hmmm. Very interesting. I wonder what Whacko Macko thinks?

Australia has many nature!

Australia has many nature! Australian men are gentles. You can go to swimming everyday!

Americans love war!

British is raining all the time!

Tanaka-san is can't do some

Tanaka-san is can't do some fake posting well. She easy to see through, I can do. Bad sounds try to fake bad English.

What a piss-poor "Borat" post that was.

سلام

I've been teaching here in The Kingdom for 7 years now, and I've considered going to Japan. Granted, the financial reward for living here is good, but it's no picnic. After researching English teaching in Japan, I've soundly decided against it. The entire thing seems like one big circus and the teachers are made to be the clowns.

This anon guy is obviously a pissed off English teacher. I have met many many Saudis that can speak English very well, but never one at native level. It really isn't possible without spending YEARS in a western country.

I do have to say though that the teachers do seem like a lot of whiny toddlers. You don't see this level of complaining on the Korean or Thai forums.

يجب أن اذهب الآن

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