NOVA’s 1Q 2008 Results: Red Ink or Blood?

27 Responses to “NOVA’s 1Q 2008 Results: Red Ink or Blood?”

1. Pellegrini on August 28th, 2007 3:17 pm

   I know they are slim, but what are the chances
   that NOVA will be bought out by another entity
   before the end of the year?

2. Ken Worsley on August 28th, 2007 6:08 pm

   You might have answered your own question: slim. For an acquisition to make sense, two things need to happen:

   1) The current president/CEO needs to step down. He’s part of the problem. I wouldn’t hire him to work at a convenience store. He has already indicated that he will not step down, which is apparently why HIS and Bennese walked away.

   2) The operations need to be slimmed down, the brand image needs to be fixed, and a business model showing profit needs to be established.

   NOVA is stuck in a shrinking sector of a growing market; the eikaiwa sector is continually shrinking as part of the EFL pie. When that happens, it’s a clear sign that management doesn’t get it.

3. Pellegrini on August 28th, 2007 9:26 pm

   He’s just going to go down with his ship, huh?
   What a team player!

   If I were a NOVA employee, I’d start stealing
   pink bunnies now. You could probably get five
   bucks apiece for them on eBay.

   What’s your prediction: November? December?

4. Novateacher on September 10th, 2007 12:57 pm

   A profitable business model?! from NOVA?! lol. unfortunately they ARE slimming down operations, hell we have even been given HALF sheets of paper to write notes for our students now because we cannot order any more!

   NOVA has also started doing some shady things, i have heard from other teachers NOVA is collecting rent for its apartments but NOT paying landlords.

   I am not sure if you guys are aware of how NOVA sales works, its not a matter of students paying per lesson. The entire lesson plan (often in excess of 400000yen) is paid up front! So when NOVA starts heading downhill and looking bad - new students will not sign and that means no more money for nova.

   Its going to get real rough really soon for us teachers!

5. Ken Worsley on September 10th, 2007 1:45 pm

   The entire lesson plan (often in excess of 400000yen) is paid up front!

   Actually, at least until recent months, the preferred method of payment was credit, since there was an interest surcharge added to the cost.

6. I just quit on September 13th, 2007 11:23 pm

   I was just kicked out of my apartment because Nova didn’t pay my landlord the rent. For those of you who don’t know, it is common in Japan for employers to give a subsidized apartment to their staff. Nova doesn’t do that, instead they give you an apartment and then charge you double it’s value.

   There were three people in my apartment. We each payed 55000yen/month. The apartment was recently listed as being worth 85000yen/month. Nova was profiting almost double the value of the apartment every month from us living there through gouging their own employees. They pocketed our money trusted to them to pay for our rent, and ejected us from our apartments.

   I quit today after hearing that we wouldn’t be paid on time this month. I don’t even know if I’m going to get paid for my whole last month’s work.

   suffice to say, I’m very, very, disappointed, and a little angry.

7. Ken Worsley on September 13th, 2007 11:42 pm

   Thanks for your comment. If I were you, I would be more than a little angry.

   That NOVA has been ripping off instructors and profiting from their rent has been well-known for years; it’s often something that people figure out 6-12 months into their Japan experience with NOVA and realize that the company is not actually trying to help them out at all.

   Not paying you is illegal, but it seems as though NOVA is getting away with this right now. How they have not been forcibly shut down is beyond me, but I think that Saruhashi is looking at jail time once the insider trading stories come out.

   If you are not paid, I would encourage you to go to your local labor office and file a complaint. Encourage as many other instructors as possible to file complaints should this happen.

   How did you hear that you won’t be paid on time? Is that a fact?

8. Another Angry NOVA Teacher on September 14th, 2007 8:40 am

   Yes, i can confirm that instructor salary will be paid late this month. Received this information also yesterday and i am very angry as it seems they have decided to pay those instructors in the larger cities but withholding payment from those of us living in regional areas.

   As it is a clear breach of contract by NOVA, i am interested Ken if you could enlighten me to the available options. I am expected to show up to work tomorrow and ’smile for the students’ as usual.

9. Chris on September 14th, 2007 10:38 am

   Im talking to a mate who’s last day is today… (at Nova) as of 10.40am they still haven’t been paid… he has a feeling that it might not happen…

10. JJ on September 14th, 2007 11:29 am

    I head last night that we definetly won’t be paid before noon today…but my source had no idea whether or not we’d be paid after that time either…

11. Ken Worsley on September 14th, 2007 11:39 am

    JJ, Noon sounds rather arbitrary. Could there be any logic behind that?

12. JJ on September 14th, 2007 1:52 pm

    MM people have been paid
    now Nova is promising 3pm for regular instructors and Wed for titled instructors (which sucks for me because I am an AT)

13. Chris on September 14th, 2007 1:58 pm

    I can confirm JJ…
    Nova teachers have now been paid.. Titled Teachers next week….

14. JJ on September 14th, 2007 4:33 pm

    The word now is that no one is getting paid until the 18th. People in Osaka have been paid, probably to avoid them storming head office

15. Matt on September 14th, 2007 11:34 pm

    the dirty liars sent a fax today saying that due to a glich the hokkaido section only could not be paid. no apologies or explanation. just got off the phone to my mate in kyushu who also wasnt paid….
    novas dead, its been treading water for so long and now its going under. by some great fortune i managed to get a job in a real estate company in hokkaido last week so im out but really worried for everyone else left in nova. those that have a bit of money saved id say hang on and get ready to claim unemployment benefits but whats the jobscene going to be like flooded with thousands of unemployed ozzies yanks and brits? i hope saruhashi gets a long jail sentence

16. another kanto nova instructor on September 15th, 2007 12:17 am

    i heard from my RAAM today, unofficially, that this late payment scheme will continue through december.

17. K on September 15th, 2007 12:56 am

    I am in Kanazawa…not what you would call rural…but we won’t be paid till the 19th. Any advice other than not showing up would be greatly appreciated.

18. Nick on September 15th, 2007 9:06 am

    I worked at Nova for 18 months back in 2000. My experience was just as Ken described: A few months in I realised I was paying double for my rent and got the hell out. Fortunately friends I was working with needed a new flatmate and I could move in almost immediately without needing key money or bond.

19. M on September 15th, 2007 9:32 pm

    i am very frustrated. i am a titled instructor and have been listening to the staff and instructors fear for their jobs and future security for a while but especially over the past three months. the japanese staff are not allowed to complain but have been paid up to two weeks late for three consecutive months. the higher the rank. the later your pay. they are also waiting bonuses that should have been paid in july/aug. these bonuses have been silently forgotten. most ladies are waiting for their bonuses and then going to quit.
    if anyone has more info on getting to a local labour office even if it is a few helpful japanese phrases this will be appreciated.
    reason being is that the company freely hands-out pay slips even though they have not paid instructors. i have done a little bit of law in my past and i am certain that this constitutes as fraud whether we are residents or not.

    some info for all hanging nova instructors:
    1. in the past, our company president has signed all faxes. nowadays, his name is incorrectly spelt and either hanko-ed or simply unmarked. is he even in the country? or has he jumped the boat fearing the wrath he deserves?
    2. many branch closures have started and more are on the way.
    3. the japanese staff only get told on a need-to-know basis. many ladies dont even know their school is about to close until they have to start packing. or they get to work one day and notice the branch has marginally shrunk by a third.
    4. instructors have found out from students that their branch is closing.
    5. the last company-president apology to the staff included a biblical quote which i find extremely insulting. the letter before that had a quote from an ancient japanese philosopher. he asked everyone to stay positive for the good of the community. let me tell you that the good of the communty is not going to pay rent!!!!
    6. some of the guys who answer phones at head office and ECQG have also been boycotting because of financial “delays”.
    7. RAMS, CAMS the lot are also looking at their pensions and national insurance for security.

    is it bad? most definitely. time to find some private students to pay for tickets home.

20. head's up on September 17th, 2007 2:11 am

    To all and any people coming over to work for Nova at the moment, morale is running LOW…The recent legal woes and lack of upper level management skill have left the company in dire straits. As of 3 days after the last standard pay period, only roughly 20% of all teachers throughout Japan have gotten paid.

    The media hasn’t reported much after Nova’s legal issues were resolved but the financial ramifications are hitting hard. If you plan to come over, consider alternatives if things get any worse. One option is that you can use your japanese visa for any english teaching position in Japan because the government doesn’t tie it to the company that originally sponsored it. That is, if you leave Nova, or you come over and soon after Nova goes under, you are still allowed to seek employment for the duration of your visa (between 1-3 years). Also, if you manage to work legally at least one month, you qualify for up to 3 months of unemployment insurance which pays roughly 60% of your base salary. Good luck all. Japan can be an interesting place to visit so if this isn’t working for you, don’t give up. There are other private schools out there and even local schools in some cases may help to sponsor a visa.

21. Bunny Goes Bust? on September 17th, 2007 11:09 am

    […] 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. […]

22. Chris on September 17th, 2007 3:30 pm

    You might want to mention that if Nova does fold there will be 1000s of teachers looking for work…

    Getting a job… hell even getting privates is going to be mission near on impossible … if Nova does pack it in…

    I wouldn’t be coming over unless I had some money to back me…

23. sahashi on September 17th, 2007 9:29 pm

    Just sipping on a pina colada, pristine golden sand warming my little japanese tootsies, crystal clear waters lapping the shore. Hope all is well in NOVA land.

    Wish you were here

    Yours truely

    Sahashi san

24. Simon on September 17th, 2007 11:39 pm

    Wow, this is messy. Good luck to all the instructors out there. Sounds like there are going to be more than a few unhappy campers commiserating over a few beers…

25. furiousmilksheikali on September 19th, 2007 11:31 am

    I just quit
    Sep 13th, 2007 at 11:23 pm

    “I was just kicked out of my apartment because Nova didn’t pay my landlord the rent. For those of you who don’t know, it is common in Japan for employers to give a subsidized apartment to their staff. Nova doesn’t do that, instead they give you an apartment and then charge you double it’s value.

    There were three people in my apartment. We each payed 55000yen/month. The apartment was recently listed as being worth 85000yen/month. Nova was profiting almost double the value of the apartment every month from us living there through gouging their own employees. They pocketed our money trusted to them to pay for our rent, and ejected us from our apartments.

    I quit today after hearing that we wouldn’t be paid on time this month. I don’t even know if I’m going to get paid for my whole last month’s work.

    suffice to say, I’m very, very, disappointed, and a little angry. ”

    How did they manage to throw you out? This is completely illegal. Did they have you forcibly removed by abillifs

26. Perry Omodei Zorini on September 21st, 2007 9:33 pm

    I am a NOVA instructor based at the Multi Media Center in Osaka, the situation here is as follows:
    - Titled instructors have not been paid yet. NOVA missed the second deadline (today Friday 21 September) and postponed their payment to next Tuesday. These news were given to titled instructors by means of a letter which bore the name of president Sahashi but was not signed.
    - A number of NOVA instructors held a peaceful demonstration in Osaka asking for wages to be paid immediately and for Mr. Sahashi to resign.
    - Many instructors, given the situation, are now concerned about the next payment day (Monday 15 October), we are all working without information whatsoever and without the certainty that next month NOVA will be able to pay for the work we are performing now.
    - Some instructor has contacted the local Labour Office in order to find out what can be legally done when wages are not paid on time. Apparently, according to Japanese labour laws one can file a complaint only when wages are paid late for a two months in a row. This may not be all but is all we know at this stage. It is up to you all if you want to take a risk or leave the ship.

    The demonstration was covered by a photographer and a couple of journalists from Yomiuri Shinbun, so check this paper tommorow.

27. Readytorun on September 22nd, 2007 3:54 pm

    The same thing happened to Lado in April. The President did a runner with the dosh from that company and several others. The instructors were told for two to three months that their pay was coming, and continued to believe so until they turned up to work and the doors were closed.
    Some have only just received the backpay after 6 months; some are still waiting.

    You have options: strike en masse (don’t threaten to strike - just sort it out together and do it); get ready to take whatever is not nailed down (computers, etc) in the even of the school closing (they have to give you access to get your personal belongings); and make sure you all have copies of the texts, cds etc to use if the school closes (because that’s where you’re going to pick up your private students and they’ll probably want to keep using the same materials); suss out your wards - they will all have classrooms you can rent by the hour, grab your favourite students and run…

    It’s not something I would have ever advocated before, but seeing the closure happen to friends and former colleagues this year has completely changed my opinion. Cover your asse(t)s as best you can.

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