The crippling blow came in June, when the Ministry of Economy, Trade and Industry ordered Nova to partially suspend business because of false advertising. The penalty, which included a ban on long-term lesson contracts, caused student enrollment to plummet and sparked the closure of several schools. Paychecks began coming in late.

That’s interesting to read given the timing of taking Financial Techniques for Tourism Development this summer. Not everything can be accounted for in a business plan, and even though a company had been operating successfully for 26 years doesn’t mean it’s immune.

When the big ones fail, they fall hard. From Australiann Teachers High and Dry in Japan:

At least 5000 foreigners, 2000 Japanese staff and 400,000 students at the private English-teaching chain have been left in a precarious financial position by the move, which could herald one of the biggest corporate collapses in Japan’s history.

I feel badly for my friends who remain, but I know some saw the ‘writing on the wall’ and got out and or made other employment plans. There are others who are still in a bit of a pickle, and I worry. I also worry about the Japanese staff, especially those I knew well from MM. They can’t pick up and go home, this was home.

Luckily for the teachers who wish to go home, reports have surfaced of both Qantas and Korean Air offering a break for cash-strapped teachers. Good to see people not taking advantage.

From Western teachers in Japan face redundancy as Nova language schools close:

Thousands of foreign teachers including 900 from Britain face redundancy, financial misery and eviction from their homes after the collapse of Nova, Japan’s largest chain of English language schools.

I think that shows the biggest change. When I first went to Japan in 2001 it was a haven for Aussies and Kiwis due to the strong Yen. They could make good money. The Yen had fallen recently and it was no longer the amazing deal it had been, but it still drew people keen for a fun way to pay off student loans, learn about a new culture, teach and travel. Will this end the eikaiwa in Japan? Of course not. Students still want to learn English and say what you will about McEnglish, there was a reason it lasted as long as it did. I just hope whatever company steps into the void will not make the same mistakes.

There are rumours that Nova will find a sponsor, but I doubt it. 50billion Yen is a big hole, to say nothing of a lack of trust from students and employees

Nova Collapse Feared is certainly an attention-garnering headline, but it doesn’t say anything new. The fact that students are turning up having not been notified that their school closed is very symbolic of Japan. In that sense, I’m not surprised that information hasn’t been more forthcoming… it’s not the Japanese way. As for the staff, it’s sad. I was never living week – to -week while there but I knew many people who were down to their last Yen in the days/hours before the 15th of the month and I can’t imagine how that sector is fairing.

While it doesn’t seem that the MM Centre is on the verge of closure, I still can’t imagine  the changed landscape of not seeing a Nova on every corner. I’d imagine MMC is one of the most costly branches due to the technology employed, however I see it remaining open because it allows them to centralize staff while at the same time reaching students all over Japan.

While it wouldn’t be fair to say that a lot of people went to Japan after graduating college, or even that a lot who did worked for Nova, I think the possible closure would represent a big change for Japan and those interested in teaching English. I also feel bad for the students – there are other schools but Nova had the benefit of location and convenience. Also, many students didn’t seem to see the downside of Nova. I can’t count the number of times I’d meet Japanese in different part of the country who were seemingly awed by “Nova no sensei.”  English lessons weren’t cheap and the possible closure of a school as large as Nova is going to drive prices up and make it harder for those for whom English was a hobby.

I didn’t love Nova and they weren’t perfect, but part of the reason I went back when I returned to Japan in November 2005 was because they’d always done what they’d promised for foreign teachers: they arranged the visa, arranged housing and paid a set sum on time. To me, those were selling points. I also said I’d rather go with the “devil I knew” because none of the eikaiwas are perfect.

Stories are flying about people being evicted from their apartments because NOVA hasn’t paid the rent and branches closing. Going to be interesting to see what happens over the next few months. I’m glad I’m no longer there but I know people who remain so I hope it doesn’t go too bad too quickly. I’m hoping to return to Japan to visit, I can’t imagine not turning the corner and seeing a Nova branch every three feet. To me they’re a part of the Japan landscape as much as sushi, karaoke and love hotels.

Finding a lot of friends from my first trip to Japan on Facebook was fun. Some I remembered but didn’t know how to reach, some I’d forgotten about and others I knew through other friends. I’ll always have good memories of the first time in Japan because it was a wonderful opportunity and I met a ton of people. I learnt if I could do a year in Japan, I could do anything. Plus I saw some places I never would have seen and kicked the travel bug into ultra high. I don’t regret either stint with Japan/Nova but I wouldn’t teach there again.