G.communication Co. has sold off the failed English conversation school chain Geos, which it took over in April, along with the Nova chain of English schools, The Yomiuri Shimbun has learned.
An investment company led by Masaki Inayoshi, who formerly served as chairman of G.communication, purchased the subsidiary of the Nagoya-based firm that ran both Geos and Nova, under a contract that took effect Friday, informed sources said.
Inayoshi’s purchase of the two English school chains followed a decision by Foody’s Co., the parent of G.communication, to withdraw from the operation of Geos and Nova. The decision came in the wake of the bankruptcy on Sept. 10 of Incubator Bank of Japan, the major banking partner of Foody’s, according to the sources.
The failure of the bank gave rise to concern over Foody’s financial management. Foody’s engages mainly in extending financial and human resources backing to restaurants and related businesses, they said.
Nova has 490 locations and Geos 167.
The firm newly in charge of running the Nova and Geos schools says it expects no major problems with their operations, the sources said.