Nova Corp., reeling from an advertising scandal, is planning to close at least 200 of its 900 or so schools by late September to turn around its struggling operations, sources said Sept. 20.

People walk in front of a Nova sign at Tokyo Station. JAPAN TIMES PHOTO

The nation's largest language school chain is mainly targeting money-losing branches, but some of the 200 branches are being closed for failure to pay rent.

Nova said in a statement that it has not officially made any decision on the closures and will disclose information when necessary.

Nova, headquartered in Osaka Prefecture, was ordered by the Ministry of Economy, Trade and Industry in mid-June to suspend part of its business for six months for lying to consumers about its services when soliciting students. It then went into a slump as the ruling crippled its ability to enroll new students.

The scandal prompted many students to end their enrollment, and contract cancellations will likely rise, the sources said.

At its peak in June, Nova had some 480,000 students. But Nova admitted in August that total enrollment will likely plunge 19.2 percent year on year by September.

The schools slated to be shuttered are located mainly in Tokyo and major cities in Osaka, Aichi and Hyogo prefectures, where rents are high. The company has picked about 50 branches, including Nova Kids schools, for the shutdown.

The total number of closures will likely be far in excess of 200 because some landlords are threatening to evict over defaults on rent payments, and Nova is offering to vacate some of the properties, some of the sources say.