The fate of up to 400 language students hangs in the balance with reports that their schools’ parent company has closed its Australian schools.

This week, eight Australian schools owned by GEOS in Japan closed but the fate of the company’s schools in Auckland, Wellington, and Christchurch remained uncertain, GEOS Auckland manager Stuart Binnie said.

The New Zealand schools are owned by GEOS in Japan but registered here. Between 300 and 400 students from up to 25 countries are enrolled in the three schools, which employ 20 to 30 staff.

If the schools closed, the students’ fees would be refunded or they would be placed in another English language school, he said. “I would guess there would be a lack of confidence in the brand name.”

An industry insider said the New Zealand GEOS schools would probably lose students rapidly “now that the reputation of GEOS among the international agents who supply the New Zealand schools with students has been compromised”.

The possible New Zealand closures follow the recent deregistration by the Qualifications Authority of two private Auckland training centres for non-compliance.

Authority records show the agency has long-running concerns with GEOS New Zealand’s financial management, although it was noted in the last audit at the end of 2008 that the company had made progress addressing the concerns.

According to the company’s annual financial statement, the New Zealand branch of GEOS lost almost $900,000 in 2008 after making a profit of nearly $1.2 million in 2007.

English New Zealand chairman Rob McKay said that, even if the New Zealand schools did not close, their reputation would be damaged. GEOS was one of New Zealand’s biggest private schools teaching English to foreign students.
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GEOS’ head office in Tokyo said its schools outside Australia would operate as usual, but admitted the closures might affect its reputation and student numbers.

http://www.stuff.co.nz/dominion-post/national/3286808/Uncertainty-over-language-schools-fate

The Victorian Registration and Qualifications Authority (VRQA) says it will protect the 2,300 students affected by the possible closure of a number of English language schools across Australia.

Nine companies associated with GEOS, which operates the schools in Melbourne, Sydney, Adelaide, Perth, and Brisbane, went into voluntary administration late last week.

The authority discovered that directors of GEOS have been diverting revenue from its Melbourne business, to support the operations of its other companies both in Australia and overseas.

A decision is expected to be made today on the schools’ future and Lynn Glover, the director of the VRQA, says the students and 400 staff will be looked after.

“If a decision is made by the administrators for the college to close, all overseas students will be protected by the tuition insurance scheme,” she said.

“This will mean that students will be placed in suitable alternative courses, here in Melbourne, at no additional cost and the VRQA will be supporting that process.”

http://www.abc.net.au/news/stories/2010/02/01/2806552.htm

The voluntary administrators of eight English language schools say that the schools will not reopen because of the financial situation.

Justin Walsh and Adam Nikitins of Ernst & Young say they are working with the federal department of education and state government departments to find arrangements for the 2300 international students.

The administrators were continuing to investigate the nine companies operating under the GEOS name and hope to provide a further update on Wednesday, Ernst & Young said in a statement on Monday.

“We’ve very quickly worked through the options to keep the schools open, but were unable to do so,” Mr Walsh said.

“That included speaking with the Japanese parent.”

GEOS, which had schools in Melbourne, Adelaide, Sydney, Cairns, Gold Coast, Perth and Brisbane, is the local subsidiary of the Tokyo-based language teaching company of the same name.

“Funds weren’t forthcoming” from GEOS, Mr Walsh said.

GEOS’s media relations manager was not immediately available for comment.

The students, from 20 different countries including Brazil, Colombia, South Korea and Turkey, and 390 employees were being informed at meetings on Monday afternoon.

“We’re working with federal government to minimise the impact on the students,” Mr Walsh said.

http://news.smh.com.au/breaking-news-business/eight-english-schools-wont-reopen-ey-20100201-n8nn.html

Eight collapsed language schools owned by the Japanese-based GEO Group will remain shut, leaving the places of 2,300 students up in the air and 390 employees out of work.

Administrators Justin Walsh and Adam Nikitins of Ernst & Young said in a brief statement released yesterday that the financial position of the schools, which were shut down last week, was such that they could not continue to trade.

“We are continuing to investigate the financial affairs of the companies and will report to key stakeholders in due course,” the pair said.

Total debts owed to students and other creditors could be as high as $10 million, according to media reports.

The colleges are located in Melbourne, Sydney, Adelaide, Perth, Brisbane, Gold Coast and Cairns, with the largest number of students based in Melbourne (530 students) and Sydney (500 students).

Australia’s international student system contains consumer provision protections which means students at a collapsed school will be given places at other institutions.

The administrators said they will now work with “the Federal Department of Education, Employment and Workplace Relations and relevant state government departments in relation to alternative arrangements for students”.

“Government agencies will also be holding information meetings for affected students in relation to consumer protection and alternative arrangements from Wednesday this week.”

GEOS Oceania is part of the GEOS Group, which operates language schools in North America, Europe, Singapore, South Africa, Korea and New Zealand.

Most of the schools in Australia have been running since the 1990s, while the Brisbane campus was established in 1987.

GEOS, which stands for Global Education Opportunities and Services, was founded in Japan in 1973 by Tsuneo Kusunoki.

The company’s global expansion has been wound back somewhat in the last few years, with 10% of the company’s Japanese schools shut down in 2007 and centres in Vancouver and London closed in 2008.

Troubles at the GEOS college in Melbourne appear to have been mounting in recent months. According to The Age, the Victorian Registration and Qualifications Authority had become concerned about GEOS following a financial audit.

The collapses are another blow to Australia’s beleaguered international education system, which has seen a string of high-profiled failures in the last 12 months.

Sterling College and Melbourne International College went under in July, while four schools – Meridian International School, Meridian International Hotel School, International Design School and International College of Creative Arts – with a total of 13 campuses, collapsed in November.

http://www.smartcompany.com.au/professional-services/20100202-collapsed-geos-language-schools-will-not-re-open-as-debts-hit-10-million.html

THE collapsed GEOS English language college network was permanently shut yesterday after administrators discovered the Japanese owners had left it with no money to keep going.

Students and staff are owed more than $10 million in pre-paid fees and entitlements.

Worst-hit are about 1000 students who had paid GEOS for homestay accommodation and who could now face eviction.

GEOS student Joachim Adam from Germany has already been told by his landlady in Melbourne to immediately pay his weekly rent of $220 dollars or leave, even though he has already paid all his rent to GEOS.

“I must pay by this evening or I must go,” he said.

Administrator Justin Walsh of Ernst and Young said remaining funds “are vastly insufficient to continue trading”. GEOS was put into administration by its Japanese parent on Friday.

The Australian understands students, landlords and agents could be owed about $10 million, while the entitlements of the nearly 400 staff also run into the millions.

Student fees are protected under an assurance scheme run by peak body English Australia in which students are entitled to be placed with other colleges.

English Australia said it was confident of being able to place all students, but some are already regretting they chose to study in Australia.

Mario Galindo, a 39-year-old university tutor from Colombia, paid almost $7000 for a ten-month course to improve his English. He has been left stranded with two months tuition owed.

“I thought this was a serious country . . . but now I think it was a mistake,” Mr Galindo said.

Pina Vigo of West Preston in Melbourne was yesterday showing her newly arrived nephew, Filippo Zilio, from Italy, where his GEOS college was, only to find it closed. Mr Zilio, 19 had paid for a month’s study.

“It stinks,” Ms Vigo said. “How can they do this to the students? How can the government not know?”

GEOS has schools in NSW, Queensland, South Australia, Victoria and Western Australia.

http://www.theaustralian.com.au/news/nation/collapsed-college-owes-students-10m/story-e6frg6nf-1225825684175

MORE than 250 foreign students receiving tuition on the Gold Coast have been left without a school and, for some, a place to live after their English language school was closed suddenly yesterday.

Eight schools operated in Australia by the GEOS group, including one in Surfers Paradise, shut their doors in the afternoon after receivers were appointed when the group went into voluntary liquidation.

Nationally, the closure affects about 2300 students from countries such as Japan, China, Switzerland, Argentina and Brazil.

Jean-Baptiste Fouroux, 29, from France who had been studying at the Queensland College of English in Surfers for two months, said he was shocked.

“We have been told nothing,” he said last night. “I went to class today (Friday) and they said nothing to us.

“If this is true, I want my money back. I’ve paid $320 a week for my course which runs for 12 weeks.

“I don’t know what I will do.”

Mr Fouroux’s host father in Mermaid Waters, Christian Ulrichsen, also was unaware of the administrators moving in.

“I have two students staying with me,” said Mr Ulrichsen.

“I haven’t been informed — I haven’t even gotten an email.

“I will assist them as best I can but I’m limited in my resources.”

Justin Walsh and Adam Nikitins of Ernst & Young are administrators to nine companies operating the schools in Melbourne, Sydney, Adelaide, Perth, Brisbane and Cairns.

Bill Egerton, who is contracted by GEOS to pick up foreign students for the Surfers Paradise school in his Koala Blue bus, said: “The receivers walked in and told everyone to leave. They have closed the doors. I’m owed about $4000 from them.”

Mr Egerton said there were about 260 students at the school.

He said 15 students were due to arrive this weekend but would have nowhere to go.

“These kids pay $10,000 to $15,000 each for tuition.”

The administrators said a better understanding of the financial situation and a decision on future operations should be known by the close of business on February 1.

http://www.goldcoast.com.au/article/2010/01/30/183565_gold-coast-news.html

EMOTIONAL scenes erupted outside a Perth language school today after it closed unexpectedly due to financial problems.

Dozens of foreign students, who have already paid thousands of dollars for courses, were still arriving for night English classes at St Mark’s International College in Perth tonight.

The school is one of eight language schools across Australia, owned by the GEOS group, that went into voluntary administration this afternoon.

About 2300 foreign students are currently enrolled across the nation, facing an uncertain future.

Some students could be forced to return home if the terms of their visas have been breached because they are unable to take part in full-time study.

Justin Walsh and Adam Nikitins of Ernst & Young have been appointed administrators to nine companies operating the schools in Melbourne, Sydney, Adelaide, Perth, Brisbane, Gold Coast and Cairns. They have about 390 employees and international students from a number of different countries.

“The financial position of the companies is such that the directors appointed voluntary administrators,” Mr Walsh and Mr Nikitins said in a statement on Friday.

“School operations have been temporarily suspended while the financial situation of the companies and ability to fund future operations of the schools is assessed over the next few days.”

The companies under administration are GEOS Melbourne Pty Ltd, GEOS Adelaide Pty Ltd, GEOS Sydney Pty Ltd, GEOS Cairns Pty Ltd, GEOS Gold Coast Pty Ltd, GEOS Perth Pty Ltd, GEOS Brisbane Pty Ltd, GEOS Management Services Pty Ltd and GEOS National English Academy Pty Ltd.

The administrators said a decision on future operations should be known by the close of business on Monday, February 1. Students have been told to return for a meeting at 2pm.

“Employees, students and creditors will be advised as soon as possible,” the administrators said.

One student said she had paid $3000 for a three-month English course, while another stood to lose $11,000 for a 12-month course.

Students huddled together outside the college tonight, unsure of what the future held for them.

http://www.perthnow.com.au/business/shock-as-st-marks-international-college-shuts-doors/story-e6frg2qu-1225824866792