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April 22, 2010

230 GEOS schools to be taken over by G.Communication, 99 schools to be closed

GEOS.jpegGEOS has debts of 7.5 billion yen and has filed for bankruptcy. 230 GEOS schools will be taken over by G.Communication and 99 schools will be closed. G.communication alo took over schools from Nova when they went bankrupt and now manages about 470 English conversation schools. About 29,000 of the roughly 36,800 GEOS students will be able to continue studying. The plan is for the schools to reopen on Friday under the management of G.communication.

There have been rumors since last summer that GEOS was in serious trouble, but these rumors were always denied by the GEOS management. The end, when it came, took GEOS teachers and students by surprise. It is not clear what will happen to the students and teachers in the schools that are being closed, though GEOS has indicated that there will be no refunds for classes that have been paid for but not yet taken.

Tsuneo Kusunoki, the President of GEOS, together with Kiyoshi Aki, the President of AEON, founded AMVIC in 1973. AMVIC split into the two separate companies of GEOS and AEON in 1989. GEOS focused on having schools around the world while AEON preferred to focus on Japan. It was the closure of the GEOS Australian schools in February that convinced many observers that GEOS was in serious trouble.

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