Eight GEOS language schools go into voluntary administration leaving thousands of foreign students in the lurch
Australia’s English language teaching industry suffered a massive blow on Friday with news that eight schools operated by the GEOS group had gone into voluntary administration, leaving up to 2300 foreign students and nearly 400 staff in the lurch.
Ernst and Young have been appointed administrators to nine companies operating the schools in Sydney, Melbourne, Adelaide, Perth, Brisbane, the Gold Coast and Cairns.
In a statement, administrators Justin Walsh and Adam Nikitins said: “The financial position of the companies is such that the directors appointed voluntary administrators. 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.”
Staff at the Manly campus in Sydney heard the news around 4pm on Friday and were told they had one hour to collect their belongings. A notice on the front door advised callers the school was closed until further notice.
The English language sector association, English Australia (EA), is working closely with the Department of Education, Employment and Workplace Relations (DEEWR), Department of Immigration And Citizenship (DIAC) and the administrators to ensure that the GEOS students are taken care of.
“EA recently successfully (and quickly) placed all of the English language students displaced by the Meridian closure and we will be working to ensure that GEOS students experience the minimum disruption to their studies as possible. All the GEOS colleges were members of the EA Tuition Assurance Scheme and the students will be found places in courses with other EA member colleges as quickly as possible,” said EA executive director Sue Blundell.
The news is also a blow to the backpacking sector. It has been trying to forge closer links with the english language industry, which attracted 160,000 students to the country in 2008.
A decision on GEOS’s future should be known by close of business today.
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