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The Pink Bunny is for the pot - NOVA-TANIC -
09-26-2007, 01:00 AM
I don't work for Nova, but I've been following the developments with nova since last week when I heard that 400 schools were going to be closed, including shinsaibashi and umeda branchs.
The foriegn teachers are on day 12 of waiting to be paid, people walking out left right and center, calling in sick, putting their foot through the plastic plant pots. It's safe to say, that this really is the end of Nova, and if it doesn't declare bankruptcy before september ends, it will in October. The freefall seriously started with the gov sanctions on them selling their 3 year contracts, and ordering them to pay back FULL refunds to students that wanted it. The thing with that, is that the 3 year contracts where students paid like 900,000 for 3 years of points with an expirey date was their major cash cow. Because most of these people never actually used the points, and if they asked for a refund of unused points, they gave you back less than what you paid for them. This was Nova's business model, and how they made their money. Now with governement sanctions, they cannot sell these 3 year contracts, and people are coming back and asking for their full refunds. Nova simpilly doesn't have the cash to do it, and the s*it has hit the fan. Most telling is that Nova delayed the summer bonuses of the Japanese staff saying it would come in Oct instead (hah), and the pay for staff has been getting later and later, leading to the current situations crises point. To try and get some liquid cash, Nova has been ordering it's Japanese staff to buy contracts, with the promises of refund when everything is A-OK again (...yeah right) Nova poneyed up a bunch of junk bonds (something like 700milyen worth) that couldn't be redeamed for a year, and a return of 2%. Again, shows nova's desperation for cash for these refunds and salarys. You'd have to be smoking something good to think buying these things was a good investment. Nova hasn't been paying rent on some of it's schools and teacher's accomadations (which they already make a profit from double charging the teachers that live there). Sahashi the director and primary share holder of nova (70% controling worth, and has gone on record to say he will NOT release control because he's an insane meglomaniac) sent a mass communication to employees quoting the bible. His whereabouts is unknown, with it rumoured he is in France. The accountants and lawyers quit long ago, which is a REALLY bad sign. when accountants and lawyers bail, it's usually cos they don't want to be held accountable for the companies screw ups. Better to leave your job than loose your license or go to jail. Nova's stock is down the pan. I think as of closing yesterday it was 42. So back to the nova teachers waiting for their pay. They're seriously getting pissed off and alot of calling in sick and not turning up to work today. As I said, I don't work for Nova. However, I'm watching this because this does effect everyone in the Eikaiwa industry. If you're looking for work now, forget it. It's going to get worse when Nova closes it's doors cos that means 5000 foriegners looking for work. Currently on gaijin pot you apply for a job it's like 'there have been 73 other applicants' etc. Japanese people's faith in Eikaiwa accross the board has been shaken, I've heard that at other companies people aren't renewing their contracts for a year, just 3 or 6 months citing the problems with Nova. I don't know if the eikaiwa industries image will recover, but if it doesn't well that's bad for us that make a living this way. Of course it could be that this will be a major shake up for the eikaiwa industry, and they'll all amend their business practices to stop ripping off students and employees. Those at Nova who are waiting for their pay, god speed. It seems the best course of action is to get yourself dismissed, then you can go to Hello Work and claim unemployment straight away, rather than waiting for the bunny to finally croak. 
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