Bankruptcy
On April 21, 2010, Geos Corporation filed for bankruptcy with the Tokyo District Court with an outstanding debt of about 7.5 billion yen. 99 schools closed, and 230 schools were handed over to G.Communication, which is also the "sponsor" of Nova. According to court-appointed administrators, G.Education, part of the group, will open the schools as soon as possible. G.Education Co., a 100 percent subsidiary of G.Communication established in Nagoya in 2003, is in charge of the company's education sector. It currently has 42 English conversation schools and 225 instructors and other staff under its brand EC Eikaiwa (EC English Conversation).
Around 36,800 students were studying at Geos schools at the time of the collapse and 7,800 students are studying at schools slated for closure. The Geos schools in New Zealand and Europe have been taken over by previous employees. The fate of the 12 Geos schools currently operating in the USA and Canada is currently unclear.
Another round of closures on October 30, 2010 will affect all GEOS schools on Kyushu and most on Shikoku. GEOS is again being downsized as it and Nova are personally reclaimed from G.Education by G.Education founder Masaki Inayoshi's Inayoshi Capital. Per agreement, schools in Ito-Yokado supermarkets will stay open a few months longer.
On 15 October 2010, Inayoshi Capital said it intends to close about 20 Geos branches that compete head-to-head with Nova branches, and also plans to integrate another 20 Geos branches with cram schools. Furthermore, about 50 of Geos' 167 branches nationwide would adopt the new brand and start using Nova curriculums. These new "Nova x Geos" schools are scheduled to be established on 1 November, according to the chains' parent firm.
Read more about this topic: GEOS (eikaiwa)
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