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Why GEOS Failed

J-Cast News takes a look at what brought about GEOS's bankruptcy and what's in store next. Here's a summary.

As is already known, G.communication will take over 70%, or 230 schools, of GEOS and close the remaining 99 schools.


Kusunoki Launches an Appeal

Down but not out, ex-GEOS president Tsuneo Kusunoki has launched an immediate appeal against the bankruptcy procedures.

According to the Sankei shimbun, Kusunoki claims that there was no need to file for bankruptcy and that it amounted to an abuse of authority as the board was not unanimous in its decision.

Japan: to Keep the GEOS Brand

When G.communication scooped up GEOS I wondered how much blood they could squeeze from the GEOS stone. Apparently, they think quite a bit. It seems G.communication has gone on a media blitz this week with President Hideo Sugimoto giving interviews in the Yomiuri shiumbun, Mainichi shimbun, Sankei shimbun, and The Japan Times. The purpose of this interview was to stress that everything is under control and it's business as usual:

GEOS Internal Memo: There's No Money Left

Debito has it:

With the absolutely regrettable news of the bankruptcy of Geos Corp, I must tell you that your salaries for the time period between 2010, March 16th to 2010. April 21st Will NOT be paid to you. There isn’t any cash left. We will work on a way for you all to collect some of your money back through the government. We are still unsure of the procedures to do this.



In response to its customers not getting enough information about their lessons in the aftermath of GEOS' bankruptcy, GEOS has posted a brief FAQ [PDF] dated April 24 in an attempt to explain things. Here's a quick summary.

METI to G.communication: Pick up the Phone

For a company that sells English lessons under the pretense that it will allow you to communicate with the world, G.communication has been very poor at communicating with its staff and customers. The Asahi shimbun reported yesterday that although g.communications set up a toll-free number for students to call, people are finding that it's almost impossible to get through.

Kusunoki Stomps his Feet

As I wrote previously, Oh to have been a fly on the wall at GEOS. You already know the obituary:

The failure of major language-school operator Geos Corp. occurred because the company didn't trim unprofitable branches fast enough at a time when the industry was facing a drastic drop in students, people in the industry said.


The Foreign Language School Market by the Numbers

Adamu at MutantFrog has taken the time to graph the numbers for the foreigner language market in Japan. If you've been following developments, you know that the numbers are bad. That said, he has an optimistic take on what's in store in for eikaiwa.

Lessons Unlearned

When Nova went bankrupt in 2007, two central themes of the collapse were the large pre-payment of lesson fees and the inability of Nova to provide refunds. The fallout was so large, the media dubbed Nova's collapse as the largest consumer wipe-out since the end of the Pacific War.


The GEOS Fallout Begins

If you saw the GEOS press conference on TV this evening, one thing was very conspicuous by its absence: Kusunoki wasn't there. In his place was Kazumi Suhara giving the bad news.

According to the Jiji Press, Kusunoki didn't attend because he wasn't prepared to file for bankruptcy while some of his executives were. A GEOS lawyer at the press conference said that due to divisions within the company, bankruptcy proceedings went ahead without the consensus of the board.



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