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Eight GEOS Australia Schools in 'Voluntary Administration'

Add this to the list of GEOS's woes: voluntary administration.

Eight English language schools operated in Australia by the GEOS group have gone into voluntary administration, leaving about 2300 foreign students unsure of their future.

Justin Walsh and Adam Nikitins of Ernst & Young have been appointed administrators to nine companies operating the schools in Melbourne, Sydney, Adelaide, Perth, Brisbane, Gold Coast and Cairns.

They have about 390 employees and international students from a number of different countries.

"The financial position of the companies is such that the directors appointed voluntary administrators," Mr Walsh and Mr Nikitins said in a statement on Friday.

"School operations have been temporarily suspended while the financial situation of the companies and ability to fund future operations of the schools is assessed over the next few days."

Voluntary administration is like Chapter 11 in the United States or corporate rehabilitation in Japan. In other words, they are effectively bankrupt. The eight schools affected are: GEOS Melbourne Pty Ltd, GEOS Adelaide Pty Ltd, GEOS Sydney Pty Ltd, GEOS Cairns Pty Ltd, GEOS Gold Coast Pty Ltd, GEOS Perth Pty Ltd, GEOS Brisbane Pty Ltd, GEOS Management Services Pty Ltd, and GEOS National English Academy Pty Ltd.

The administrators said a better understanding of the financial situation and a decision on future operations should be known by the close of business on February 1.

"Employees, students and creditors will be advised as soon as possible," they said.

It will be interesting to see what the administrators learn about GEOS's financial situation. It has been suggested in previous posts on GEOS that the company has had to rely on transfers from overseas schools in order to pay its staff in Japan. Is business so bad that they've drained their schools in Australia dry? So much for rumours about the company's health; now we know it's not good.

Japan: 

Comments

There is no way back from this for GEOS, at least for their schools outside Japan. The market has lost confidence, they`ll be swamped with cancelations. I give the GEOS brand about a month to live.

from what I understand the O/S side of the business is more or less run independently but they have to kick back a certain amount of cash per month to the parent company - who knows how much the Aussie side of things contributed to the overall company - but you've gotta think that 8 schools is gonna make a dent.

To the geos teachers who get paid about this time of the month - it might not be a bad idea to take it easy on the nights out this month - maybe its not going to cause too much pain, but surely its better to have a bit of cash handy in case you get paid late

or ask you boss if everything is ok in Japan, I think there is no kidding ourselves, it is over start looking for work people.

Well only Aeon left now out of the "big three". Come on Thorn, only 1 to go now

"Ask your boss (Japanese branch manager) if everything is okay?" bwahahaha the branch managers and any gaijin "trainers" who have sold their souls will continually spout that everything is okay even after the rats have deserted the ship and the waves are coming in over the bow.

Take what your bosses say with a huge pinch of salt. If you hadn't already started looking for other work when pay was reported late in October, then get looking for other work NOW - any other jobs still left out there will be getting snapped up like wildfire right this minute, in time for the start of the new academic year in April. Stay on at GEOS until you get something else sorted - if it does go belly up, at least you should get your UI - but get searching NOW for other positions, ASAP.

Even more than this, if you haven't already, start planning a life beyond eikaiwa, and try and find a real career with a future and a direction to it. Doing a real job of real value, and developing real skills, will lessen the chances of you drowning in the shipwrecks of GEOS and other eikaiwa.

Seriously Geos employees, you need to start looking for new work. This is really bad news for your company. I'm not saying this as someone who wants the company to go down or as a personal attack. Companies like Geos who take a lot of money upfront need a degree of trust from their customers-especially after what happened to NOVA so recently. News like this would probably destroy Geos even IF it HAD BEEN healthy overall before this news.

Just a simple fact.

The damage to reputation is compunded by the Australia wide nature of the Administrations. Newspapers in all capital cities are picking up the AAP story. Perth paper has already got pictures of young gobsmacked students hanging around outside the closed Perth campus.

Hey guys! Not good news. Have a look at ASIC Information Bulletin 75, available on net at
http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/Voluntary_admini...$file/Voluntary_administration_guide_for_employees.pdf
and that will tell you about the pickle we are in. Happy days, happy trails.

Guys, it's over. There is absolutely no way that agents will send students to GEOS. I own schools in cities where GEOS has a presence and have spent the day fielding calls from panicking agents who are trying to work out what to do. Don't hang around waiting to try to pick anything off the bones - there won't be anything here. Trouble is, of course, that there are so many teachers floating around in the downturn, coupled with schools reluctant to hire in light of the utterly absurd new government Award that has just come out, that there are just no jobs going.

Guys, School Owner is 100% accurate. It's over. And those in the know have know it was over for some time. Remember all the significant Australian magerial staff who quit the company over the last half year?? What motivated their decisions? And their light-weight, inexperienced replacements have been left holding the parcel

How are the authorities going to handle this most recent Australian education crash? "Tut tuts" of grief and the notion that other english colleges will pick up the slack??? Or a genuine attempt to find out what has been happening to one of the biggest ESL providers in the country. Of concern is why, if many people were aware of issues in the company, the federal and state authorities did not intervene at some earler date.

Watch the drama unfold.

What's happening in Japan, any guess how long
it will take to fold here. I've got another job but not for a few months.
Anyone know anything.

A shout out to all the GEOS teachers in Japan : I feel for you guys. Soon, GEOS will be no more. If you don't start looking for - and get a new job - in the next month, start making plans to go back home. ITS OVER GUYS. The signs are there, loud and clear. Word on the Eikaiwa streets is that GEOS teachers in Japan will most likely not get paid next payday.

The GEOS college in Perth, Western Australia was the most successful English language college in the state and looked like an incredibly profitable business. The only possible explanation for its closure is that the profits were taken offshore. Shocking for everyone here.... now Japan has lost its cashcow you are in deep trouble

@ Anonymous 12.55

Geos Perth was not and has never been the most profitable school in the state. It has always been known for stupidly high commissions and absurd discounting. Don't just count heads and lead to a conclusion - the bottom line is a lot more complicated than that. The Australian GEOS schools have never been a cashcow for Japan - indeed, they have rarely been particularly profitable. Makes no difference, of course - GEOS Japan will go down now. Teachers, heed this - FIND A NEW JOB. You will note that I made the same comment on these forums a couple of months ago in relation to GEOS Australia. Let me make it clear now - GEOS Japan is in a death sprial. Get out, save yourself. You will not be looked after.

methinks NEAS was more privy to the accounts than any of the poor hapless staff. That's why GEOS Perth was only given a tentative 6 mths reaccreditation... Of course, none of the captains who jumped ship let anyone else know. In fact, there were a lot of 'everything is fine' speeches as they left with their long service, holiday entitlements and everything but good karma intact.

They will be saying exactly the same in Japan.

"Word on the Eikaiwa streets is that GEOS teachers in Japan will most likely not get paid next payday."

HILARIOUS! The word on the streets? People have been saying that Geos employees won't get paid every month since 2006.

For those who don't know, Geos Australia is a separate company to Geos Japan... it's similar to the Bertlitz, ESL Berlitz fiasco last year. Australia going down would not likely have a huge impact on Geos' Japan operations.

My personal feeling is that this is a move by Geos to divest themselves of part of the overseas division. They are probably hoping a buyer will come in and take it off their hands.

Anonymous @ 13.15

NEAS do not examine accounts.

This is incorrect. The profits from the GEOS colleges in Australia have been funding the salaries for staff in GEOS Japan and overheads for not only Japan but GEOS international colleges throughout the world for some time.... so nope, GEOS Corporation is in dire straits.

I worked for GEOS Japan not to long along go...and its a FACT widely known and discussed openly but top management in GEOS that GEOS Japan`s life line is its international schools. GEOS Japan will have another level of financial difficulty with GEOS Australia going under. GEOS Japan depended on GEOS Australia for regular funds. It should be obvious to anybody that GEOS Australia went under because the money was sent to Japan to keep the schools here in Japan afloat.
The news has already hit Japan about GEOS Australia closing and that information is in Japanese. This situation will further damage the GEOS Japan image....just last year GEOS students in Japan were worried about a bankruptcy and their confidence was hanging by a thread...and when the news broke last fall about j-staff being paid late caused a massive student refund request...I know this because the school I worked at lost 40% of its students in 60 days because of the late payment mess which resulted in myself quitting. I can only imagine what the Japanese GEOS student reactions will be to GEOS Australia closing abruptly....Im sure it will be the main topic of every class for awhile in Japan.

The president of the company will not sell any part of his international schools...they WERE the schools that made a profit or some kind of profit, as the schools in Japan are sucked dry and in massive decline. GOES international schools are a selling point when signing new students or renewing contracts...the schools in Japan are plastered with posters of its Australian schools and European schools. Without those schools, they will appear as any other eikaiwa in Japan. International schools make them appear to be different, when they`re really not.

GEOS is nothing but a shell...I hope 2010 is the year GEOS goes under for good. I feel real bad for the students...but they should have done their homework and researched this company BEFORE they handed GEOS their cash. Best of Luck to the teachers in Australia.

Former 2009 GEOS teacher-Japan

平成22年1月30日(土)

社員の皆様へ

お知らせ

お疲れさまです。
マスコミやインターネットにおいて報道されておりますオーストラリア現地学校法人の各学校が会計事務所の任意管理下に置かれ、休校していることにつきましてご説明いたします。
 昨日突然、上記管理人からの連絡により、オーストラリア各現地法人とその学校が同管理人の管理下におかれたことがわかり、非常に驚いているところです。各現地法人とその学校は全て現地法人で運営管理されており、経営内容、財務状況などにつきましても全く独立しており、連結もしていないため、詳細は判明しておりません。
現地法人とその傘下の学校は「GEOS」の名義使用した学校運営をしておりますけれども、これは㈱ジオスが現地法人に商標使用権を許諾していたためです。
いずれにいたしましても、このことが社員の皆さんや生徒の皆様にご心配をお掛けすることとなっておりますが、㈱ジオス本体および国内の各校には影響がありませんので、ご心配はございません。
また、オーストラリアを除く各国の現地法人やエージェント様からの情報でも影響は全く無く、通常どおり営業をしていることが確認されております。
生徒様にもご安心頂きレッスンを受けていただきますようご案内を、よろしくお願いいたします。
 なお、学校より海外校に送り出しをしている生徒様に関しましては、日本国内はもとより、オーストラリアを除く各リージョンでも問題なくレッスンが行われておりますことを親御様等へご説明いただき、また、会社の斡旋でオーストラリアに留学ホームスティされている生徒様には、混乱の無いように連絡をとって安全の確保をしているところです。また報道されておりますとおり、2月1日の管理人からの決定をもちまして弊社の救済措置を発表いたします。
 この件について、対策本部を設置しております。マスコミ関係の取材に関しましては、総務部:菅原までご連絡ください。
                            株式会社 ジオス 総務部

以上

Where profit is dispursed does not cause a company to collapse. The problem here is that GEOS Australia was not making a profit. People seem to be struggling with this.

re Anonymous 13.27

The intended corporate strategy was to start selling off the Australian schools in first quarter/first half of 2010 The problem they now have is that enterprises in voluntary administration are damaged goods in the market place.

Enterprises in any form of administration are utterly unsaleable in the ESL world, which relies entirely upon confidence in the product

In fact, the schools in Australia and in fact, Melbourne is the most profitable school IN THE WORLD of GEOS schools, so why would they let their most profitable college go...?????????????????

It is a known fact GEOS Australian colleges have been subsidising GEOS colleges around the globe.

Sorry buddy, whoever you are, rep for GEOS Japan - Corp perhaps?

No no no Australia was saving the globe, and now this has happened, GEOS is gone, only a matter of days now

that looks real to me

seems like Geos Japan didnt know anything about it until the news broke

I was referring to the japanese memo up thread - sorry thought I had quoted it

My Japanese pal called GEOS head office in Tokyo 8pm Sat 30th Jan (tonight) to ask them about this story. "Where do you hear this?!" Incredulation was the response ie denial/sales damge control mode.

Does anyone else work 8pm on a Sat night to answer the phones?

Amazingly, this has slipped under Japanese radar for months.

This is 100% false.

ALL GEOS Australia schools have been making a tidy profit, even on the back of the financial crisis. However, a greedy "president" in Japan has been forcing the Australian schools to send money to him, and his failing Japanese company to keep the a float.

If it were not for him, and his complete lack of business sense, there would have been absolutely no need for the administrators to be called in.

菅原さんへ 
それはとってもうそでしょ. 日本ジオスがだいたい一年間半前前から海外学校から現金とられはじまった、してるでしょ?
それでいま、日本ジオスのせいで海外学校のひょうばんが破壊された. なんか変な会社だな、会長?あなたたちが、とってもわるいことしたでしょ?毎晩眠れるかがんばってね。あなたたちはもおわった。さよなら。

Dear Mr/Ms Sugarwara
That was a complete lie now wasn't it?
From just a year and a half ago GEOS Japan started taking cash out of their overseas schools, you knew that right? 。Now, GEOS Japan has destroyed the reputation of the overseas schools. What a strange company, eh Kaicho? You guys have done something awefull, havent you? Hope can sleep at night. You're finished. Goodbye.

You are 100% correct. Greed and zero business sense did him in. You reap what you sow. He chased away all the good staff and pushed the only schools making him money into the toilet

[My post above....]
I was referring to the post entitled 'Where profit is dispursed[sic]' in my post.

It seems like quotes might be experiencing some trouble?

Good to know someone else has enough mental capacity to see through the mist of bullshit GEOS is trying to pull over the eyes of everyone they come in range of.

It seems like quotes might be experiencing some trouble

You have to copy and paste the text, and then put in in the blockquote tag (the third button from the right on the little toolbar). It also helps to preview your post before posting it.

Shawn
Let's Japan.org::Blog

To Geos Employees:

It's been mentioned on one of the Geos threads before, but here it goes again:

Take a pay stub to the local Hello Works office and make sure that you are eligible to receive unemployment benefits. If you're able to receive them, DO NOT QUIT YOUR JOB AT GEOS IF YOU DO NOT GET PAID. START CALLING IN SICK AND LOOKING FOR ANOTHER JOB.

If you quit, then you won't be able to receive unemployment until after a few months, if I remember correctly from my NOVA experience.

If GEOS goes bankrupt, or goes into bankruptcy protection, you may then quit, and receive unemployment benefits after two weeks - again this is from memory.

If you have a conscious about calling in sick to work, consider this: in the last two months before NOVA went under, they didn't tell us anything about the company's finances, or encourage us to start looking for another job. They just kept us in the dark and lied to us. They even lied to recruitment agencies over seas about their condition, so new teachers were being sent over only a month before they went belly up. They never got paid once.

Fuck them.

Put yourselves first, because it's your right to do so. If GEOS doesn't have the decency to tell you what's happening with YOUR TIME AND YOUR MONEY, then fuck them.

"Word on the Eikaiwa streets is that GEOS teachers in Japan will most likely not get paid next payday."

HILARIOUS! The word on the streets? People have been saying that Geos employees won't get paid every month since 2006.

For those who don't know, Geos Australia is a separate company to Geos Japan... it's similar to the Bertlitz, ESL Berlitz fiasco last year. Australia going down would not likely have a huge impact on Geos' Japan operations.

Bury your head in the sand all you want - GEOS Japan is like a dead man walking now. GEOS Australia has been the cash cow, pumping yen into Japan to prop them up. Now, they are no more. Will they have the cashflow available to pay the Japanese staff next payday? Will their Creditors in Japan continue their lines of credit for salaries? What excuses will they make when payments are not made?

Look, my good friend, if Eikaiwa teachers have not learned anything of the downfall of NOVA, then they are going to get seriously burnt.

GEOS TEACHERS - START MAKING ALTERNATIVE PLANS NOW! YOU SHOULD JUST ASSUME GEOS WILL CEASE TO OPERATE IN FEBRUARY - WHICH IS WHAT EVERYONE IS SAYING NOW. EITHER GO HOME, START MAKING ENQUIRIES WITH HELLO WORK, OR FIND A NEW JOB BEFORE APRIL.

So what was the final straw for Australian management? Interestingly, the Federal Government's current Annual Registration Charge (ARC) invoice would have hit GEOS mail room about 10 days ago. Payment due towards the end of February. Current ARC levey is about $30 a student + $300 or so administration fee. So we can guestimate an invoice in the $60 to $70K range. Not a big big sum in commercial terms but not small bikkies if one doesn't have it in the corporate kitty.

ARC? Nope, much more likely the incredibly flawed 'Modern Award', which will add significantly to the wages bill of all ELICOS schools in Australia. Expect many more to go down in 2010 as they are increasingly unable to meet payroll.

To school owner, you require your staff to be qualified and have CELTA, DELTA or an MA but you dont want to pay them for having said qualifications. Remember school owners and large companies have screwed the conditinons of teachers in Australia to make more profit andthe result being people dont want to be in the industry. Why? No job security living fortnight to fortnight, very little input into proffesional development from the schools, it is expected that teachers can pay from their crappy salary, get real!!!!

You sound like a lot of Eikawa owners just out to make money at the expense of teachers and students.
Pay peanuts you get monkeys.

Hi School Owner. mmmmm so u feel it was the in-coming award. Interesting 'cos it has national application.

@ Anon 15.24

Ah, the ignorance of the truly disconnected. There are so many misconceptions in your post I don't know where to start. How hard a concept is this for you to get your head around? Schools in Australia are barely viable. You think GEOS will be the last to go in 2010? Take the time to learn what the Modern Award means for ELICOS schools before you mouth off. All of those teachers with their CELTAs, DELTAs (can't remember the last time I saw one of those, and I'm getting 40 resumes a week at the moment as school scale back) and MAs are about to be unemployed as the industry collapses. Satisfied that they're getting their due now.....unemployment benefits. Let's see how valuable that 4 week CELTA is now, shall we?

Yep, this guy is spot on. I'm not sure how much difference the 2010 Modern Award is going to make but he sure is right about the possible future of private sector colleges in Australia. I had a shuffti at a Japanese/Sydney agent's site yesterday and the ammount of discounting going on is horrific. With a week's tuition on offer at less tha $200, how much fat is there for employers to pay anything other than a bottom line wage. No wonder the new-chum traveller with a fresh CELTA is proving such a "popular" sight in the Australian staff-room!!!

Bottom line wage? Keep in mind that the average pay cheque in my schools is now in excess of $42/hr, plus superannuation and so on. That's not too bad, is it? I wish people would take the time to do the maths before mouthing off - as the poster above says, the discounting, commission and general operating environment is absolutely dire. I suspect teachers will only begin to understand this when they come to work on Monday to discover the doors locked and no one else hiring. But until then, please feel free to continue mouthing off on online forums about how cheated you are.

Again, not entirely sure how much of an impact the modern award will make but I agree wholeheartedly about the long term viability of the ELICOS sector in Australia in its present state. Anybody who needs convincing further should have a good read over this: http://www.britishcouncil.org/learning-research-englishnext.htm and either start thinking about their next career now or figure out how they're going to remain employable in 10 years time.

Ok school owner Pay the backpacker $20 an hour to entertain your students for 4 hours a day, I wonder how many students you will have after 3-6 months.
Yes I can understand that wage costs are high but look at what teachers actually earn, capped at 25 hours a week. It makes it a low wage so you cant say that teachers have it easy, Living in Australia is expensive and the wages and the conditions that teachers have had to accept is a joke.

Sure the discounting and commissions paid is a "school owners lot" but it is something that the teachers have no control over so as for spouting off, you are doing exactly the same but from a different perspective.

what do you want? teachers to work for the lowest wage that is possible so the industry will survive and so you can feed the sharks with the rest of the funds remaining from the students fees.

Suggestion Stop wasting money on lavish dinners , sending staff half way arounnd the world for useless unproductive meetings (read, Party Getting drunk) and use that money to run your schools.

User pays increase the price and make it realistic instead of too low that you cant pay yoour staff.

I have a student here in Japan whose daughter was due to go to a Geos school in Aussie next month. Presumably the fees paid are lost. Howabout the homestay component? Is there a rule in Australia that homesay fees must be kept in separate accounts, or are they part of general funds?

Any info on this topic or groups set up to seek redress would be most welcome.

There are no rules like that in Australia. but the government will not leave the students in the lurch so to speak, its an important industry for them to protect. School fees maybe ok but I think any homestay fees will be lost.
Anyone else know?

Where is the editorial on the Party Getting Drunk? love to see this! at the expense of students and underpaid teaching staff and Kusunoki sitting there with a smile on his face. Let the media get a hold of this one I say.

Photos could be arranged.

@ 17.34 I read up to the bit about sending people off on useless trips (read party and getting drunk), then I stopped. You are a complete fool and there is no point engaging you. If that are so utterly pig-ignorant as to believe that there is absolutely no way that you will be convinced of anything else. Go back and mooch around your staffroom and continue being bitter at the world. I am so glad that I have spent the last few years squeezing no-hopers like you out of my staffrooms.

@1749 Bad news for you. The Tuition Assurance Scheme, which all accredited schools contribute to, covers all tuition fees for student visa holders. Unfortunately, very few of the students at GEOS would have been on this visa. There is no scheme to protect money for tourist or Working Holiday visa holders, and there is no scheme to protect accommodation fees. Unless there is some miracle bail-out of GEOS, this money is gone. The government will certainly no become involved.

do you want the one where he is flicking his ash into his lap dogs hand or the one where the lap dog opens a bottle of water and hands him the bottle.

Both!! get'em out there

I dont mooch around a staff room in Australia, Have my own school with happy staff and happy students
did this 2 years ago and am glad I dont work for a slave driver like you anymore.
Respect others and you will get it back ten fold but you are too busy running around like a chicken with its head cut off.

Good luck and you too might be in line for unemployment, thats what happens to arrogant school owners

@ 1818 I don't think I have to worry too much about unemployment there, Sunshine. And I fail to understand how you seem to know that I am running around like a decapitated chicken. I also fail to see how I am a slave driver. I pay the Award, promote from within and have never had an industrial relations issue of any kind. Biut good luck to you. I'm sure your minnow school pays you a very comfortable living wage. You must be proud.

Please email me your contact details and I will help you rearrange you course in Australia; Daniel at educatours@a8workandstudy.co.uk

School owner, you just sound that way, as for me I am content with my minnow school as I am not greedy or have any desire for grandure.

It does seem that you have no head or you would be busy building the next english empire instead of being here on an eikawa forums. Me, I am happy here, have a lot of friend at GEOS Australa and know a lot about what goes on and went on there.

@1847 Not greedy, or not sufficiently capable? Be honest with yourself, anyway. And I will worry about how I spend my Sunday nights, thanks, without your generous career counselling.

There it is arrogance at its best . Well done school owner. I dont hold much hope for your school, I feel sorry for your syudents and staff. I wish them all the best of luck. As for you..............

@1903 - Nah, just messing with you :) . Thought I'd give you a chance to bite. I really don't think you are in any position to comment on my school, though. Bit pathetic that you felt the need to, really.

As a recently unemployed member of australian geos i advise all geos employees worldwide to look for work elsewhere immediately. Listen to "the truth" on the damage control thread...

Even if australian geos is profitable and sold off to another company (wont happen but wishful thing on my part) and presented in another name there is no way students or agents are going to sign up for it.

No warning, no pay, no job, no market... That is the situation australian geos employees find themselves in. The rest wont be far behind.

I had wondered why there hadnt been many japanese students at my school lately. Hindsight is a wonderful thing! Nice when you dont have "friends" to give you the low down!

As for "school owner". You are a twat and a troll. I wouldnt give you the time of day mate.

Good luck to all "current" or previous geos employees.

x the recently retrenched x

School owner, ditto brother smutt!!!!!!!!!!!!!!!!!!!

Really? He/She seems to be the one with his/her feet on the ground. Certainly one of the few people with any idea about how the ELICOS sector in Australia actually seems to work (or, fuck me, even a basic grasp of economics). I don't see anyone else here taking the time to explain how the tuition assurance scheme works for example.

I've worked as teacher, senior teacher, ADoS and now DoS at Australian schools for many years and I've yet to see any lavish dinners or management perks so I have absolutely no idea how you've come up with this idea. Are you talking about GEOS Japan? Because yes, those guys spent money like it was going out fashion, hence the factor that their company is now up shit creek. In my case maybe I'll get the school to pay for my trip to the NEAS conference most years, perhaps a couple of professional development sessions if they're local and not too expensive. I guess you could talk about the famil trips (familiarisation trips for the uninitiated)... I take agents out for dinner with the principal on the company dime a few times a year but a lot less than in several other jobs I had before I got into ELT. It's hardly a banquet every night. Fact is most businesses rely on a certain amount of wining and dining to secure new business and ELT is no exception.

And like every other school I know, we pay award, provide opportunities for professional development, try to promote from within and follow current legislation. It would be great if I could pay above award or employ a staffroom full of teachers at $50 an hour on full time contracts but the fact is that the award directly reflects the financial reality of the industry. There's a good reason why the government chose not to take the advice of the independent teachers union and drastically increase ELT teachers wages in the 2010, because doing so would lead to the closure of huge numbers of schools and/or lead to the price of tuition being forced up across the country, driving students away to other, cheaper destinations like the UK, New Zealand or America. So yes, casual ELT wages are crap, and honestly, they're only going to get worse now that the market is now flooded with desperate ex-GEOS staff.

There are people in the staffroom though who are making more money though. And you know what they've got in common (at least in my school)? A DELTA or an MA.

"school owner" or "yohoho" or "troll"

what a pretentious wanker you are!

wouldnt want to work for you even if you did pay the new award! i would rather be on newstart!

i have my pride darling! and working for a tosspot like you wouldnt do anything for my self esteem, my career or my finances i imagine!

I can't believe that any school owner would carry on that way: really. Set an example, please.

I cannot the for the life of me see how this can be construed as pretentious. Please explain what part of what I've said offends you so very much...

Oh, and I don't speak for 'school owner' and have no idea who he or she actually is. They may or may not want to weigh in here, that's up to them. Personally I have to be at work in the morning though so this may have to wait until tomorrow.

School owner and Yohoho miss my point, Yes I am talking about Geos and the way they waste money and I suggested that Schools start to charge the correct amount of money for fees so that you can be in the ESL industry in Australia, if business cant do this and pay their staff, they shouldnt be in business and students can choose to go to cheaper distinations. If students can not afford to study and live in Australia then so be it.
Australian/New Zealand schools cant compete with distinations such as the Phillipines, Sri Lanka. and others and they should be realistic and have enough business sense to decide if they can afford to offer the servise of ESL or cut their losses and look for another type of business.

On the off chance that anyone really in the know is reading this, I have a question. GEOS Japan told their staff that the Australian schools were basically a franchise, only using the name, and that the bankruptcy wouldnt have a direct effect on the Japanese schools. Is this a barefaced lie? Off course even if they were only using the name its gonna have an effect on Japan anyway, but I want to know about the true connection those schools have to GEOS Japan. If anyone can shine some light on this that would be tops. Gossips, people with axes to grind etc feel free to ignore this post.

Its a lie. FACT!

And you know this how? Read the post properly, or dont contribute. Simple.

Its common knowledge. I also worked for Geos in Australia and money large amounts were always been sent to Japan.

Again, read the post. I asked whether it was a franchise or not, and whether the recent annoucement made was true, specifically the bit about using the GEOS name. Nothing about money being sent. I worded my post the way I did for a reason.

I am a former admin staff of a GEOS Australia college that was closed alongside all other Australian Colleges on the 29th January 2010. I had a key position in regards to accounts and the financial situation. Japan has been taking all the profits and capital from Australia for a long time. As soon as we made any money it was taken from us. GEOS Oceania (Australia and NZ) was the top earning region of the GEOS International group. We were the money makers. Perth carried all the other schools within Australia and helped them stay afloat for a long time. As soon as Perth began to struggle the other colleges didn't have any money to help us in return. When the recession hit hard we had no money to fall back on as a region because it was all taken by Japan. I also found out that GEOS Japan and the head office have no money. Zilch. Zero. Nothing. So there was no help coming from there. No money was being sent by the other regions in the world either.

I have been told that it doesn't matter that GEOS Japan, Europe and North America are still functioning. GEOS Australia is on its own. After we pay the administrators for closing us down and pay off the secure creditors there will more than likely be no money left for staff who are owed their last fortnight of pay and accrued leave. I am not keeping my hopes up in regards to receiving the hundreds of thousands of dollars owed to myself and all other staff. You would think that due to the GEOS mother company still existing that they would take on the costs of paying out staff and finalising money owed to creditors. Wishful thinking on my part.

I laughed when the Administrators said that they would look into the financial situation and see whether the college can be opened again. If the College is indeed opened again who would be stupid enough to inject more cash into this already unstable pathetic excuse of a company? So give up on any hope of that happening. What makes me sick is that our GEOS Management services aided in the money being taken from Australia and did nothing to stop it. They had control of all money going in and out of Australia.

I resigned on the 20th January 2010 and I now wish that I had wiped my hands of GEOS much earlier. Head Office consists of Crooks and Fraudsters. We received a letter from the "owner" of GEOS on the 4th December saying everything is fine when it comes to the company. What a load of crap! Even right up until the end they were spinning lies. No care for the people who would eventually suffer.

I will be attending a meeting tomorrow with the administrators. Pointless I know. If anything I just need to hear it all myself...and see the final nail being hammered into the coffin.

All staff of GEOS Australia who are now unemployed and any GEOS staff that still remain. Take the wise advice of my mentor and former boss, "Get out now. Get the hell out of there." and don't look back.

GEOS Australia going down will be the end of GEOS International as a whole. This is the last shovel of dirt on a grave that was dug a long time ago.

R.I.P GEOS and no doubt karma will bite all those deserving in the ass.

I worked for GEOS for 8 years - in the management. They borrow from Peter to pay Paul. They have been in the shits for years. The President is an ego maniac.....crazy....and he has been taking this ship down for years. It is surprising it has taken so long. There is no saving this company at this point. It is long gone....very sad because there were a lot of dedicated employees that tried to keep this ship afloat.

GEOS International Division, run from the Osaki Head Office, has always directed the overseas operations on a tight leash. The demand for cash to be sent back to Japan to prop up the domestic business in Japan is fact. As has been mentioned earlier, GEOS Oceania has always been the top performer financially with the Australian schools always towards the top of the sales charts. The GEOS arm dealing with placing students in overseas schools (GIEA) from Japan had the Oz schools as preferred locations. These schools were performing but were unable to use profits to reinvest. "Well done on reaching your financial goal for this month Cairns - now send it back to Japan because we're fVucked."

We received a letter from the "owner" of GEOS on the 4th December saying everything is fine when it comes to the company.

This is typical, classic eikaiwa/English school bullshit. They're never straight with their staff, and they'll be telling the staff in Japan the same thing. As I said earlier, take everything your managers say with several massive pinches of salt, get looking for other work, and when something comes up, get out of there.

Hello all.

I worked as a teacher at GEOS Australia for a few years. I was a teacher and recently left a few months ago for personal reasons. All of this does not surprise me as I always wondered what happened to all that money and why it was so difficult to get supplies for the school.

Anyway, there was a comment up top that I would like to give a bit more info on.
Former admin staff wrote:

"After we pay the administrators for closing us down and pay off the secure creditors there will more than likely be no money left for staff who are owed their last fortnight of pay and accrued leave."

There is a government payment scheme called GEERS that can get your money back it you are owed it. If the company goes into liquidation, which will probably happen, you will file a claim to GEERS and they will assist you. Have a look at the bottom of page 3 on this link:

http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/Liquidation_guid...$file/Liquidation_guide_for_employees.pdf

Best of luck to all of you and I'm glad I got out when I did.

All over Sydney on this lovely sunny Monday morning you can hear a collective sigh of contentment from ex-GEOS staff, "ah, fxxx it, at least I can have a decent lie-in...."
Enjoy the day. There is a much more pleasant life outside GEOS.

I have just read all the posts, and let me say - School Owner is the only one here who understands the real situation in Australia. I am also running a school and it is doing it real rough at the moment. Was he a troll? Maybe he was, but he was also completely right. That wasn't being pretentious, that was being right. And being criticised by people who will soon be coming to him for a job is a complete crack up.

@1:11: Finally, someone on this board who actually knows the facts, and isn't just putting together bits and pieces that they have heard along the way.

@schoolowner: Your perceptions on GEOS are so far misguided it isn't funny. The poster above you (17:34) saying 'stop sending people around the world for drinking parties is 100% correct'. If only you knew the fundamental reasons this occurred, and how often it occurred, you would have shot your mouth off and made yourself look like an ass. Whether you are a school owner or not, I don't know, but the bottom line is you don't know what you're talking about regarding the GEOS situation. Although you think you might, it is apparent to all those with correct, first hand information, that you do not.

1. Comment from School Owner is 100% accurate, pertinent and timely. Frankly, a reality about 99% of teachers is that they don't/won't know Monday from Tuesday when it comes to business matters. And that's not a criticism nor a problem, they are teachers and not business operators.

2. We have some administrator meetings scheduled for pm Monday in Australia. Could people who attend please give us a heads-up here on LJ after the meetings. Tx.

3. Careful with GEERS. It require an insolvency event to trigger worker eligibility and not a simple administration

4. And an early tx too to LJ for being here and being on the ball to help GEOS folk through what are going to be hard times.

I think the australian school workers are still believing their own propaganda. I can't speak for the last two years that i've been out of the company but until that time Australia was nowhere near the biggest contributing international schools to GEOS, but it seems that they always carried on and thought that they were. GEOS australian didn't go down because of japan, but i am sure it contributed. Bottom line for me is that the australian schools kept offering more and more discounts until they couldn't make profit. English in australia has been very strong and they could do this for a while, but now it is softer it has caught up with them.

Former Admin Staff is 100% correct. I too worked for the International Division. Since the fall of 2008 GEOS Japan sucked all of the cash out of their overseas schools to cover losses and expenses in GEOS Japan and now we see the results of their actions. Are the GEOS Schools in Australia, Canada, USA, Europe separate legal entities from GEOS Japan? Yes, of course they are. Are they all interdependent for survival? Even more so. Head office can spin this however they want to. The reality is they need the cash from the overseas schools and now there are that many fewer overseas schools. This is not fiction, it is fact.

There are a lot of very good and dedicated people working for GEOS, both in Japan and in the International Division all over the world. Many of them have dedicated years and years to the company, and THEY are the reason the overseas schools grew and grew successfully over the past ten years. It is the school managers, their staff, and the teachers who made the schools outside of Japan great. It is the CEO and his daughter who, starting a year and a half ago, destroyed all of the work that those very capable and good people did to make GEOS a great brand. The staff of the overseas schools deserve a lot better than the abuse and poor treatment they got from the CEO and his daughter. Don't let anyone tell you differently - you are a well qualified group of people, working under the gun of a madman.

It is sad that things have gone in this direction. Sad that only a few had the guts to stand up to the CEO and his daughter. And those brave few have left the fight, leaving a handful of wounded foot soldiers. I wonder how those two can sleep at night, knowing they are responsible for so many loosing their jobs. I wonder if they even have the ability to feel anything, or if they are really just the soulless human shells they seem to be. I wonder how they can live with themselves, knowing how terribly they treated people - to the point that many of the good ones left, and now the ones who remained are on the brink of unemployment. Didn't those two consider the families and lives of those so loyal to them? Obviously not.

To those of you who are left, my thoughts and prayers are with you.

Did Japanes staff get paid today and will JETS be paid on the 5th any Japanese staff out there please send
in some information.

A Knowledge Board forum (Japan) post refers to urgent/emergency meeting at GEOS HQ on Sunday.

I was suppose to be hosting students next week - But I haven't got their contact details from GEOS - How do I know if they are still coming??? Oh dear Lord...

Renato, I've been dealing with the same issue this morning, from a slightly different angle. I think you will have to assume that the students will NOT be coming until you hear otherwise. Working Holiday/Tourist visa holders will have lost their money (including their accommodation money), while Student Visa holders will likely be reassigned to other schools, and thus other accommodation providers.

If anyone knows differently, please post!

Someone I know who was a school agents said this about GEOs when I told him about it.. For what it's worth.

"GEOS in Australia going under is really no shock to me - I say this because their marketing and internal company order the whole time I was selling advertising was absolutely horrible. It was so horrible that I always had to set aside time just to deal with them because each school was ran differently - but then at the same time the decisions were somewhat made by a central office which appeared to be out of the loop .. I did make some good money from them though - I got really lucky way back and sent them multiple students with year long applications.. Also, I had a few students (from the internet) extend their courses and I got checks in the mail... I believe one of the checks was something like $1000... It amazed me that the school didn't lie like all the other schools."

Students future unclear
Thomas Chamberlin | February 1st, 2010

HUNDREDS of international students enrolled at the embattled GEOS Queensland College of English should learn today if the centre will continue to operate.

Administrator Ernst & Young worked with the Federal Government at the weekend in an attempt to keep the Surfers Paradise centre open for about 260 international students after the company went into voluntary administration on Friday.

But it is believed the GEOS group owes creditors tens of millions of dollars and will struggle to operate without significant help.

More than a dozen new students arrived on the Coast at the weekend, unaware of the college's sudden closure.

Students fear they may be sent home for breaching their student visas if they are not enrolled in full-time study.

Justin Walsh and Adam Nikitins, of Ernst & Young, are administrators to nine companies operating the schools in Melbourne, Sydney, Adelaide, Perth, Brisbane and Cairns.

"We're trying to find a solution whereby the schools can remain open and that is proving difficult," said Mr Walsh yesterday.

"We're trying to make sure the impact on the students is as little as possible. Initial discussions with the (Federal) Government is that they will try to assist us with the students' position."

Mr Walsh said he could not comment on what assistance, if any, the Federal Government would give.

"What they are going to do will depend on what we will do," he said.

Bill Egerton, who is contracted to pick up students when they arrive and take them to homes, said yesterday all the students who arrived at the weekend had accommodation.

"The homestay families booked, whether paid or not, have taken in the students," he said.

"I think the industry isn't mortally wounded but it has been damaged significantly.

"I think the receivers have a lot to answer for in the way they shut everything down."

Despite the company being in receivership, enrolment forms could be downloaded for courses at Brisbane's GEOS college yesterday.

Courses cost up to $320 a week, while a 10-week high school preparation program was advertised on studyinaustralia.com for $4770.

A spokeswoman for Education Minister Julia Gillard said the Education Services for Overseas Students Act guaranteed students would receive a new place at another college or a refund.

She said the Government had begun a tougher re-registration process for all current providers, which would be completed by the end of the year.

Asked what the Government would do to assist the students after Friday's closure, the spokeswoman said: "In the event of provider closure, the Government's main concern is helping affected students."

GEOS Queensland College of English Gold Coast general manager Im Redding could not be contacted for comment yesterday.

Here's what the Australian Broadcasting Commission have just reported...

English language schools under threat of closure

The Victorian Registration and Qualifications Authority (VRQA) says it will protect the 2,300 students affected by the possible closure of a number of English language schools across Australia.

Nine companies associated with GEOS, which operates the schools in Melbourne, Sydney, Adelaide, Perth, and Brisbane, went into voluntary administration late last week.

The authority discovered that directors of GEOS have been diverting revenue from its Melbourne business, to support the operations of its other companies both in Australia and overseas.

A decision is expected to be made today on the schools' future and Lynn Glover, the director of the VRQA, says the students and 400 staff will be looked after.

"If a decision is made by the administrators for the college to close, all overseas students will be protected by the tuition insurance scheme," she said.

"This will mean that students will be placed in suitable alternative courses, here in Melbourne, at no additional cost and the VRQA will be supporting that process."

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