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Rejected by JASDAQ Again

The big news that was supposed to be announced on October 5th turned out to be a non-event. Instead, Nova submitted its business improvement plan which was rejected by JASDAQ for being light on details. JASDAQ gave Nova until October 19 to resubmit its report.

How bad is the report [PDF in Japanese]? Between now and the end of the fiscal year next March, Nova plans to do the following (p.6 of the report):

  1. Install full-time officer in charge of disclosing information.
  2. Establish a public relations and investor relations department staffed with experienced officers.
  3. Strengthen authority of officer in charge of disclosing information.
  4. Directors of subsidiaries to promptly report on decisions made.
  5. Executives to promptly report on transpiring events.
  6. Implement in-house training for executives on disclosure practices.
  7. Promptly report stock transactions of the company.
  8. Establish an internal regulation system.
  9. Establish a system of corporate governance.
  10. Monitor progress and accept guidance via a department of auditors.

This is actually frightening when you consider that it implies Nova doesn't appear to have much of a system of corporate governance in the first place. How does this ensure teachers and staff get paid? It doesn't.

The results for this second quarter are going to be absolutely devastating. Recall that their first quarter results netted them a loss of 4.5 billion yen. That was preceded by a 2.5 billion loss in FY 2006 and a 3 billion yen loss in FY 2005. It's clear that Nova was already in deep financial trouble long before METI finally came around to issuing its punishment. The second quarter results, however, will reflect the full force of METI's punishment. You only have to go back and read the past three months of posts to get a sense of how ugly the second quarter will be.

It's so bad that even the Sydney Morning Herald is now talking about Nova collapsing:

Hundreds of Australian teachers of English in Japan should "start making contingency plans", the Government has warned, as erratic behaviour by language school colossus NOVA this week fuelled more predictions of an impending collapse.

Dozens of foreign staff at NOVA, which employs more than 1000 Australians, have reportedly been given eviction notices because the corporate giant has failed to pay the rent on their apartments, despite in some cases deducting it from their wages.

Japanese students were in tears outside the biggest NOVA school in Fujisawa, south of Tokyo, yesterday, after arriving to find the school had been evicted from its building for defaulting on rent.

Roughly 2000 Japanese staff had yesterday not been paid by NOVA for more than a week, and some young foreign employees have gone three weeks without wages, the foreign workers union said. Several teachers told the Herald they had been forced to borrow money to eat.

"Start making contingency plans" is putting it mildly and a bit late. Teachers should have gotten out months ago. If you are still working for Nova, you need to leave now while you still have a chance in the eikaiwa job market. When Nova collapses, it'll be you versus 5,000 others and it won't be pretty.

NOVAが適時開示の改善報告書 ジャスダック、不十分

2007年10月05日

投資家への適時開示の遅れなどが指摘されていた英会話学校最大手のNOVA(大阪市)は5日、ジャスダック証券取引所に改善報告書を提出した。適時開示の専任役員を置くなどの改善案を盛り込んだが、ジャスダックは、内容が不十分だとして19日までに再度報告書を提出するよう求めた。

NOVAは8月以降、数回にわたって適時開示が深夜となるなどしたため、ジャスダックが「適時開示の実務対応に問題が認められる」として改善報告書を求めていた。

NOVAが今回出した報告書は、11月中に開示の専任役員と実務担当者を配置するほか、経営企画、経理部門などの幹部社員向けの研修を実施するとしている。また、猿橋望社長が出資する親会社がNOVA株の運用でトラブルを起こし、開示が遅れたことについても、社長らに保有株式の大量移動を速やかに報告するよう求めるとしている。

NOVAは5日、講師らが参加する労働組合「ゼネラルユニオン」からの警告書(9月20日付)に回答。生徒への解約金の支払い遅延について、「一時的に処理が膨大になっている。事態を改善すべく取り組んでいる」としている。

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Whadda joke!

Whadda joke!

Translation

Install full-time officer in charge of disclosing information.
(no information officer at this time)
Establish a public relations and investor relations department staffed with experienced officers.
(investor relations handled by inexperienced sub-human primate prototypes)
Strengthen authority of officer in charge of disclosing information.
(existing office is a cardboard cut-out in the lobby)
Directors of subsidiaries to promptly report on decisions made.
(it takes months if not years for decision to be reported, i.e. rent payments stoppage)
Executives to promptly report on transpiring events.
(Executives couldn't possibly give a shxt about transpiring events below their bank accounts)
Implement in-house training for executives on disclosure practices.
(current training booklet designed by Enron and Worldcom, with a foreword by Goebles)
Promptly report stock transactions of the company.
(transactions are under-reported and perhaps buried and cooked)
Establish an internal regulation system.
(no internal regulation systems exhists, unless you pick on contract employees)
Establish a system of corporate governance.
(no such system has ever existed)
Monitor progress and accept guidance via a department of auditors.
(the nova schedule monkey will be replaced by a group of other monkeys)

RAAMS ARE QUITING

this on nova teachers united
""my buddy Jay F who is a RAAM said that unlike Laxarus the chances of this corps
conimg
back to life are slimmer cause Jesus is dead as well. he is getting his ducks in
line for a Xmas
in Canada, suggets a lot of english teachers might be unexpectly crashing a lot
of zmas
parties. they should order tickets home before the seasonal rush kicks in and drives
up prices? he
thinks the chances of nova operating in 2008 in Japan are whisker thin.""

not just gaijin

in reply to

(Let me speak for NOVA students.

When NOVA's gone, you're nothing.
Losing a job, huh? That's what you deserve.
After all, you've been overrated.
We needed competent teachers, not you.
Go home, losers! Clear?)

firstly nova is the biggest english school in japan and employs around 4-5000 gaijin and several thousand japanese staff!. meaning that if nova goes then thousands of Japanese will be out of a job as well. Not only the staff but the Japanese landlords who are being screwed over by nova are also being affected meaning that hundreds of landlords will be out of pocket we well. Furthermore if nova goes under, that will mean confidence in other english schools will be destroyed, potentially leading to the loss of more jobs from other english schools both gaijin and japanese. 'potentially leading to poorer english skills and more difficult business communication, or atleast more housewifes cheating on their husbands as they have nothing else to do!'

it is very stupid of you to wish for one of japans biggest companies to crash, as it will mean more hardship for japanese people.

it is also very surprising to see a japanese person be outspokenly racist! you must have issues!

Wolf in sheep's clothing

I think you'll find that Yurico is not really a student, or even Japanese, but rather a disgruntled ex-Nova employee simply trying to stir up some mud.

In reply to: "it is also

In reply to:
"it is also very surprising to see a japanese person be outspokenly racist! you must have issues!"

You're absolutely right! They usually show their racism through dirty looks, actions and comments kept to within themselves. A direct attack is outrages! (I hope this doesn't come off as sounding sarcastic).

Yuriko, do you really want your country to become even more out of touch with the rest of the world? Your people are already a fairly backwards, reality-detached lot. I mean, c'mon! You're all forced to study English for YEARS at school and yet can barely utter a f**king word of it! It's like some pathetic joke. You all probably have the worst English on the planet, despite it being present just about everywhere. Useless stubborn ar$eh0les.

Good and bad of Nova

As a long-time nova employee and so-called AT, I have enjoyed my time at Nova. The system like many others is far from perfect and because of its 'stubborn' 'old-style' and inconsiderate corporate ways, many of us have to endure the extreme irrationality and lack of common dog fuck by the people above us. I feel sorry for those who have been shafted or will be shafted... but not myself for other reasons.

I will admit that working at Nova is easy, but it can drive you mad and make you frustrated with th lack of training and resources. I make my best efforts to help Japanese improve their English in the best way that I can and when you do that the job becomes more fulfilling and challenging. Yes, the textbooks and available materials and resources are shitty which is why i bring in my own or make up my own.

Unfortunately, it is true that most do not improve due to the lack of dedication outside by most and that the training they give is not very good. The same at many of the other eikaiwa's as cited by a professor who posted an article in the Japan Times. The Japanese mentality about learning and the system put in place by the eikaiwa's as well as public/private schools do not fit the bill. The most Japanese have become complacant about learning. But don't get me wrong, there are people who are good at motivating and teaching Japanese people well.

Students continue Nova for one of the following reasons:

1) they still have hope they can improve
2) they like talking to foreigners and like meeting new ones
3) they looking for more eye candy and possibly sex-friend/marriage partner/etc
4) they are lonely
5) they have no other hobbies or life

BTW, yes, there are losers in the company. But the same can be said with any other company. I had a friend who worked for Bloomberg and he told me that there is incompetency everywhere within his company/ clientele of other companies. The whole lot.

Like every other eikaiwa teacher, i am planning my way out of this mess and taking steps to even exploit the problem at hand... but not by starting to break rules and wasting the time of others like many are from what i've read. start sleeping with students? what a waste of time. LOSERS!!! Why start doing what many have done or have been doing already?! Obviously, nova can shove some of its rules up its ass as well as its policies. Point is: you've done it and shown your disobedience, now move on.

Just a wart on the ass of Japan

Why do people think NOVA is a MEGA company? When Nova goes bankrupt next month, it won't even be blip on the economic radar of Japan.

Nova rents everything including the computers, desks, copy machines, head office...it's all a farce to make Saruhashi a cool million...by prostituting a language he can't even speak competently.

When Nova does, EFL in Japan will breathe a sigh of relief. Good riddance...Japanese people no longer need to be RIPPED OFF by a predatory company.

English teachers??

I just think it's funny how many blatant, yet simple, grammar and spelling errors there on here considering most are either an English teacher, or criticizing the English teachers of being incompetent. Forgiveness for all non-native speakers and people typing from cell phones.
Lastly, I can't believe people didn't clue in right away to the fact that "Yurico" was clearly not Japanese.
But... vent away, it's good for the soul.

case in point....

How many people noticed the "are" missing in the opening sentence??? ;)

There is no edit function to

There is no edit function to correct errors on this site.

And Yurico is most likely Miss pelt. Errr...

Next Monday

The bottom line is everyone expects Nova to go down between next Monday the 15th and Friday the 19th.And by everyone I don`t mean teachers.I mean all the suits!

Teachers will not be paid ever again by Nova. There will be no other report to the NASDAQ. Sahashi is simply treading water now, there is no plan and no investor. People need to organize at their branches to make Sunday the 14th the last.

There will be no payday.
The longer this drags on the more you will be owed.
Those that have left already were right to do so.
Spend your time and energy at your local employment office getting benefits.
Stop working for free!

ORGANIZE NOW !!
TALK TO THE TEACHERS AT YOUR BRANCH!
WHEN THE CASH IS NOT THERE DO NOT COME TO WORK!
GET EVERYONE TO AGREE!
IT IS OVER!
DEAL WITH IT AND STOP WASTING YOUR TIME WRITING SHIT ON THIS SITE.

Yes, there are good and bad

Yes, there are good and bad Nova teachers
And there are good and bad Nova students.

But the management at Nova is hopeless, always has been, and is a cause of all the woes.

Aim your frustration at Monkey Bridge

he is the real culprit

I worked at TOZA 10 years

I worked at TOZA 10 years ago and it went down just like what we are seeing with NOVA. Exactly the same...

I don't work at NOVA now. I left more than 3 years ago but I feel your pain. If you do quit now, you will be the last to receive any compensation. If you stay till the end, you will be the first to be compensated by the employment insurance people.

The only problem here with NOVA is that if Saruhashi doesn't officially claim bankrupcy then everyone gets jack. I would imagine he would, but you never know. If he were to claim bankrupcy, his personal fortune may be at stake. And by not claiming, NOVA could just exist indefinately as a shell, with nothing but debt.

Either way, it's not a pleasant situation for Nova people and students.

I agree. i used to work at

I agree. i used to work at nova, now i am doing other things. I hate the company and foresaw this disaster but i have enormous sympathy for the teachers that will be left stranded in japan. Some of those people will not be able to find a job. Yurico's comments were staggering to say the least. Maybe she had a bad experience at nova but that is no excuse for what she said as most of the teachers at nova are well educated - you have to have a degree, or be studying to get one, to work in japan. She signed onto nova and presumably knew that, or was she the ignorant loser? I hope she can find an english lesson that suits her. However i hope that all the teachers that are being screwed over can find a job in japan or back in their home countries and not be as bitter as Yurico is.

Not true the above.

Not true the above. Government will bankrupt the company, but it will take 4-12 weeks to go through the courts. Companies are not just left hanging in limbo as suggested above. They are a public company with shareholders as well which should help to push the process forward much faster than a private company.

Well damm even i misplelt it

Well damm even i misplelt it it!

Corporate entities

when a corporation goes bankrupt liabilites extend to the corporation's holdings. the people who run the corporation may keep whatever wealth they have that isn't in the form of stocks and shares. so executives get to keep whatever fortunes they have, they are not personally liable to pay the company's debts. that's one of the main points of incorporating a business, to protect your own assets, and raise capital from investors (shareholders).

The problem with the "stay

The problem with the "stay to the end to get benefits" strategy is that you are then competing in a job market amongst several thousand newly-unemployed people looking for work in the same business as you. I doubt unemployment benefits are better than getting a new job. If you get out earlier, you stand a better chance.

I too expect Nova to complete its in the days after the 15th of this month. Unless of course, people keep going to work without getting paid, in which case, they can survive longer.

Although I doubt whether or

Although I doubt whether or not Yurico is Japanese, I have to step in and say that I do know one Japanese "Yuriko" who prefers to spell her name with a "c". And her English is excellent.

My above comment should

My above comment should read, "...complete its implosion...". Yes, an edit function would be nice.

you are mistaken!

The impact it may have on the stock market will possibly be a blip. However, there are other factors it will have serious effects.

1. There are 400,000 students with money invested in purchased tickets. Anywhere from 50,000 to 1,000,000yen worth of purchased tickets.

2. It will be one of the largest retail collapses. 900 branch closures and 8000 unemployed. Many of whom are English speaking foreigners, and all very vocal about their losses. Imagine what that does to Japanese prestige and international standing?

3. Nova, despite its relative small size compared to the powerhouses of Japanese business, is in fact a very high profile company. By the nature of its products and its very successful advertising campaigns, it is a company that all Japanese know about. Not to mention one certain yellow peckered pink Usagi that endeared even non-Nova student fans. The collapse of Nova will again bring the risk associated with entering into contracts with language schools. I am a long term resident here and Nova is the third or fourth major collapse.

So, sorry there.....I suggest you really do not know what you are talking about when you say it will not even cause a blip.

You're mistaken...

I have been hearing many comments about how one should hurry up and get a job before they are all taken because I'll be competing with 5,000 other teachers. No, I won't. I won't be competing for jobs with people in Hokkaido or Tokyo or anywhere else out of the area where I live. Now of course there is the chance that some people are willing to relocate but I doubt it would be for a standard ALT job (which is what I will be going for). Realistically I am only competing with a couple hundred Nova employees that are going to stay IF Nova goes down. Yes, chances are they will go bankrupt but for anyone who listens to these "business" experts on this website should know that they are sitting in front of their computer like I am and just got back from working as low level English teac....naww...speaker (yes, I'm on of them...we all have our reasons for being here). Their not business analysts. We don't know all the facts. We only know the bad things that are public and get reported in the news. There are many reasons why upper management would want to keep certain details a secret. With that being said, I fuckin' hate Nova, most BTs, all ATs, and 80% of the moronic robot people at the front desk. Most of the smartest J-staff have quit, all that is left is....well you make the call.

Edit function

An edit function exists, but you have to register. Anonymous writers cannot edit their posts. That's just the way it works.

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

Shawn

Sydney Herald Article QUOTE

Sydney Herald Article

QUOTE "Roughly 2000 Japanese staff had yesterday not been paid by NOVA for more than a week, and some young foreign employees have gone THREE WEEKS without wages, the foreign workers union said."
UNQUOTE

In the above quote from the Sydney Herald article, I know the first part is true - many of the Japanese staff still hadn't received the salary they were due on 27th September. But what about the second part? I assume "young foreign employees" means instructors, so is it really true that there are some who still haven't been paid for September?? I thought regular instructors were either paid on time on 14th Sept or on the next two banking days (18th/19th Sept), and that Titled Instructors were eventually paid 2 weeks late on 28th September.
This is the first I've heard anywhere of people being unpaid for 3 weeks. Can anyone else confirm this? Dreadful situation though it undoubtedly is, it does sound like someone has their wires crossed here.

One of the problems with the coverage from instructors' home countries is that, given how much Nova is keeping everyone in the dark about the situation, there's quite a mountain of misinformation going around, and these newspapers 1000s of miles away are probably liable to unknowingly pick up some of it.

You not knowing what is

You not knowing what is going on isn't grounds for saying that other people don't. What you should be doing is either offering facts that prove/disprove the statement or saying nothing.

F.Y.I there are a lot of instructors who quit and have not been paid.

OK, thanks for the info.

OK, thanks for the info.

Well, I personally relocated

Well, I personally relocated by quite a bit to get my current job after Nova. If they were 5000 of me, then you'd have 5000 to compete with :-) It remains to be seen how ambitious these people are. I also suspect that at least 25% of them will just pack up and go home.

NOVA is just so MEGA BIG

Yes, when Nova goes bankrupt, the world markets will ripple and a new economic depression will begin.

NOVA impeccable imagine will no longer shine and the Yen will be sold across the board in all money markets within moments of Saruhashi bankrupcy announcement.

The world awaits with baited breath....

Wait...if Hitachi (100 000+ employees and market capitalization 1000x that of NOVA) would go bankrupt, that would be news....that might affect markets. Toyota, Dai Nippon Printing, Nintendo, Sony, Panasonic...who are talking about again? Oh, right...Nova!

When NOVA goes bankrupt, it will be the biggest consumer-induced collapse in Japan, sure. But in the grand scheme of things...one year from now, it'll be "Nova What?" A lot of people will lose a lot of money, and that's bad news of course. But that income was disposable anyhow...it's not as if 500 000+ people would be unemployed suddenly (if Toyota went down, for example). I'm counting all the group companies, suppliers, and affiliates that deal directly with Toyota.

The industry is in dire need of governance and oversight. Nova ripped people off as policy. I know, I worked there once before in middle management. I've seen the numbers. They're small potatoes.

What this forum needs is less wild speculation and outright exaggeration. The effect will be felt in the EFL world and in consumer confidence about EFL private education, certainly. As it should be!

Enough is enough.

Limited knowledge.

I work for Nova.

Like everyone else I only have limited knowledge of my own experience and those immediately around me. As far as i know, I was paid 5 days late, some AT's etc were paid about 2wks late & some Japanese staff are definitely yet to be paid.

What I was interested to hear was that the AAM for our area (Nagoya) is yet to be paid from last month. Obviously that's his word, but from what I know of him - he seems fairly straight.

Anyways, roll on the 15th...

so to date: hq staff-not

so to date:

hq staff-not paid
aam's-not paid
foreign recruiters (overseas offices)-not paid

is the australian paper referring to aam's?

oct 15 will be a day to remember

Also, you have to consider

Also, you have to consider the fact that the majority of those people will also likely lose their apartments if Nova goes under. So they'd be more willing and able to relocate.

What you're ignoring,

What you're ignoring, though, is that students might be considered creditors in a bankruptcy, which means they'll get some money back from the liquidation of Nova. On top of that, being famous and having an impact are not the same thing. Sure, people will know that Nova went under, but 400,000 out of 128,000,000 is not much - and few of those 400,000 will be really hurt by the closure.

"Blip" is a relative term, but I don't think there will be long-term damage from a Nova bankruptcy (not an "if" at this point). There's also no precedent to suggest that the fallout will harm Nova's competitors - two immediate benefits will be a bump in student enrollments and being able to pick and choose among new hires. Longer term, the industry has been moving toward "boutiques" and away from big catch-alls like Nova and ECC for a while now anyway.

As for international standing, Nova's collapse will have no effect. Outside of Japan, Nova is only known at all in Australia and New Zealand and this is only because a number of their nationals have worked for Nova. Nova's bankruptcy will not even register outside of Japan. It won't affect Japan's standing one bit, certainly not in negative way.

ACTION

Yes, do something! No one is going to buy Nova, no one is going to save you guys. You have to DO something. What's the point of slagging each other off or talking shit about your students? Who cares?

Go to head office, go to the NS building. Make it public, because complaining a lot, talking to the ABC and TPR and the Japan Times alone won't do it. No one cares that 5,000 people who are probably going to leave anyway are going to be unemployed. If you matter, show it!

Take action. Union leaders, stop screwing around with talk. Get 5,000 people to march in Tokyo and Osaka, EVEN IF THEY GET PAID, and you'll see something happen.

If you're in Tokyo or Osaka, don't be an ass - you're being paid because that'll keep you from making noise and getting people to notice.

Hate to break your hearts, but most of the country has no idea what's going on. At best, they have a vague idea that Nova's in trouble. If you want your situation to improve, stop slagging them off and get their attention.

Talk specifics.

BAZ

yeah mate, I know that quite a few people who quit and asked for their final salary to be sent by cheque haven't received it - some of whom have been waiting a LOT longer than 3 weeks.

But these are clearly not the people referred to in the Sydney Herald article - they would have used "ex-employees" or "recently quit" or similar, had that been the case. And I don't think they meant AAMs either - even if they had, the AAMs are still a day short of 2 weeks late. I guess it's possible that it might be newbies still waiting for their advance, who've been 3 weeks without money - but again that's not really "wages". No, it seems very likely that someone at the Herald just got something mixed up somewhere with that particular bit.

I don't mean to come across as nit-picky here however, I should stress I'm definitely NOT taking a swipe at the Sydney Herald here. On the contrary, I think it's commendable that they're actually covering the story. If I have any finger of blame to point, it's at Nova themselves for the appalling lack of reliable information they've released. But the point is - and a fairly obvious one, surely - that there's so much garbage info going around about the whole Nova situation, that large pillars of salt are required for a lot of what we're hearing.

I cant' believe all these lies

First things first: NOVA's secret passion is to violate strongly held principles regarding deferral of current satisfaction for long-term gains. For shame! My message is clear: Before NOVA initiated a feudalism flap to help promote its untrustworthy convictions ( ie. it's crap Diplomat texts), people everywhere were expected to get the facts out in the hope that somebody else will do something to solve the problem. Nowadays, it's the rare person indeed who realizes that NOVA says it's going to destroy the natural beauty of our parks and forests faster than you can say "thymolsulphonephthalein". Good old NOVA. It just loves to open its mouth and let all kinds of things come out without listening to how disaffected they sound. NOVA desperately wants to be fashionable. Why do I tell you this? Because these days, no one else has the guts to.

One of the goals of vandalism is to render meaningless the words "best" and "worst". NOVA admires that philosophy because, by annihilating human perceptions of quality, NOVA's own mediocrity can flourish. At the very least, if NOVA's instructors had even an ounce of integrity, they would champion the poor and oppressed against the evil of NOVA.

It has been brought to my attention that I never asked NOVA to tell me how to live my life. I never lived in their overpriced housing. While this is really true, NOVA keeps telling us that it is forward-looking, open-minded, and creative. Are we also supposed to believe that at birth, every living being is assigned a celestial serial number or frequency power spectrum? I didn't think so. It's possible that to the extent that my own age and health will permit, I will give you some background information about NOVA while remaining true to those beliefs, ideals, and aspirations we hold most dear and encourage others to do the same. However, I cannot speculate about that possibility here because I need to devote more space to a description of how if I seem a bit arrogant, it's only because I'm trying to communicate with NOVA on its own level. NOVA does not want to use every conceivable form of diplomacy, deception, pressure, coercion, bribery, treason, and terror to make bribery legal and part of business as usual because it is Pyrrhonism-prone, frowzy, randy, and primitive (though, granted, NOVA is all of the aforementioned), but rather because NOVA's militant fantasy fits neatly into its gutless model of society. I don't think anyone questions that. But did you know that inherent in our legal construction of blackguardism is the notion that it is a standard-bearer for the unbearable? NOVA ignores the most basic ground rule of debate. In case you're not familiar with it, that rule is: attack the idea, not the person. Finally, any one of the points I made in this letter could be turned into a complete research paper, but the conclusion of each would be the same: When NOVA is gone, all that will be left from its legacy of hate is the hate itself.

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