Geos Corp., a major operator of foreign-language schools, has filed for bankruptcy with the Tokyo District Court with debts of ¥7.5 billion, and rival G.communication Co. will take over some of the defunct company's schools, the two companies announced Wednesday.
Tokyo-based Geos, which has 2,100 employees, said it suffered poor earnings with dwindling number of students amid the recession and consumer distrust toward the industry stemming from the failure in 2007 of another major language-school operator, Nova Corp.
G.communication, which took over operations of some Nova schools, said it will do its best to secure employment for Geos employees.