NOVA Could Close at Least 200 School Branches

Mainichi and Japan Today have reported that NOVA Group, the largest English school chain in Japan, is facing major financial difficulties and will probably have to close at least 100-200 of its branches:
Slated to be shut down are school branches located mainly in Tokyo and major cities in Osaka, Aichi and Hyogo prefectures where rents are high. The company has already picked about 50 school branches, including Nova Kids schools, for the shutdown.
The total number of closures will likely be well over 200 because some landlords are threatening evictions due to defaults on rent payments and Nova itself is offering to vacate some of the properties it has been using, some of the sources say.
The 200 include school branches which were shut down in late August and so far this month, as well as those slated for shutdown by the end of next month, the sources added.
Meanwhile, Nova is believed to be running short of funds because it is falling behind in employee salary payments, according to the sources.
One employee said experienced workers with families have already been leaving the company in droves. “As far as I know, rumors about the downsizing seem to be true,” she said.
A sign that NOVA is working its way towards long term survival, or is it just a taste of the disaster to come for the school chain and its employees?

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