TOKYO - Online tutoring provider Banzan, which operates the popular service Megasta, received a court decision on February 17th to begin bankruptcy proceedings, triggering confusion and anger among parents and tutors after the company abruptly halted all operations.
Megasta, known for its online lessons that incorporate AI tools, had gained popularity as a remote learning service, but late last Friday night the company suddenly announced it would suspend all business activities without prior notice.
“We have decided to halt all of our operations,” the company said in a brief statement, and the Tokyo District Court issued a decision the following day to begin bankruptcy proceedings against Banzan.
A reporter who visited the company’s office building found a notice posted stating that operations had ceased, but there were no signs of staff inside.
Parents using the service voiced outrage over the sudden shutdown.
“It’s unforgivable. Just unforgivable,” said one man whose fifth-grade child had been enrolled in Megasta. He paid 1.36 million yen in tuition in a lump sum in October last year but said his child received less than half of the promised lessons.
“The emotional damage to my child is the biggest issue. My kid burst into tears on the spot. We’re talking about children here. For people involved in education, this is the lowest,” he said.
Some schools had also planned to introduce Megasta as part of their curriculum. Wakayama Nanryo High School had partnered with Banzan last year and was preparing to begin using Megasta lessons in its correspondence program from April, but those plans have now been scrapped. The online classes had been seen as a crucial support measure for a high school struggling with staff shortages, and administrators are now scrambling to find a replacement tutoring provider.
“We wish they had said something earlier. We had various plans on our side,” said chairman Mikihiko Kai of Wakayama Nanryo High School.
Confusion has also spread among tutors. A male instructor working through another tutoring service run by Banzan said he is owed about 800,000 yen in unpaid compensation covering the past three months, which included the peak of the exam preparation season.
“That was a period when I sacrificed sleep and worked in a state of exhaustion to help my students pass their exams,” he said.
He said the first sign of trouble came three weeks ago when he received a late-night email from the company claiming a system failure had delayed payments. Two weeks later, the explanation changed, with the company citing account freezes due to leasing-related problems. On the day payments were supposed to be made last Friday, the company instead announced a unilateral halt to all operations.
“I have nothing but distrust. As someone involved in education, I don’t feel any sincerity from them,” he said.
Questions remain over what will happen to unpaid compensation for tutors and tuition already paid by families. JNN sought comment from Banzan, but the company has not responded to requests for interviews.
Source: TBS
