All bad news for Nova
Posted by Matt Dioguardi on October 10th, 2007
Nova struggling to pay refunds, wages
Major English-conversation school operator Nova Corp. is struggling to pay refunds for prepaid lessons to students who canceled their contracts with the company midterm and has had difficulty paying employees’ salaries, according to sources. … According to Nova, the number of contracts canceled increased sharply after the Supreme Court ruled in April that the company’s unfair cancellation policy was illegal. Nova had 418,000 students as of March 31, but there were 7,880 cancellations between April and June, which cost the company 1.62 billion yen in total …. Nova has not paid salaries to 2,000 Japanese employees since July. About 5,000 foreign employees have not yet received their salaries for September. … A senior foreign teacher working in a Nova’s school in the Kinki region said, “An instructor I know has been asked to leave his apartment rented by Nova because the company has failed to pay the rent.” (Yomiuri)
The only real mystery here is what is keeping them going.
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