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Nova President Nozomu Sahashi, missing since before his dismissal, was officially replaced by three board members, including co-founder Anders Lundqvist.

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However 2005 saw Nova lose ground in total sales revenue.

posting net losses of 3 billion yen in fiscal 2005 and 2.4 billion yen in fiscal 2006 after a failed expansion attempt.

The impending financial crisis facing Nova related to a rapid increase in refund claims, significant drops in sales figures, and deterioration of its reputation, came to the fore in September 2007 when Nova began to delay payment of wages and bonuses to staff.

The NAMBU Foreign Workers Caucus in Tokyo estimated that up to 3,000 staff had not received their salaries on time.

The number of students fell to 418,000 by the end of March: down 12.1 percent from a year earlier.

The announcement of court protection and the admission that operations at all Nova branches would be temporarily shut down shocked the estimated 420,000 Nova students as some of them had paid their tuition in advance and feared their money might not be refunded.The name Nova (an astronomical term for a stellar explosion) was chosen by Sahashi as he felt it would appeal to prospective students.was met with several demonstrations in front of Nomura Securities and the Tokyo Stock Exchange.The unexpected influx of ex-Nova teachers on the job market led to immense numbers of applicants vying for a much smaller number of employment opportunities.Language education companies, even some outside Japan, attempted to tap into this labor force.Some teachers could not even afford a plane ticket home.

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