Study abroad agent apologizes to clients, says it won't pay them

Gateway21 Co., a failed private agency to help Japanese study overseas, apologized to its clients Sunday but said it has no money to pay them back.

Better luck next time: Creditors line up for a meeting held by failed Gateway21 Co. on Sunday. Hundreds were turned away because the facility Gateway21 prepared was too small. KYODO PHOTO

"I am really sorry that your dreams and lives fell apart" because of the company, President Tomomasa Fukui said as he threw himself on the ground and bowed in apology.

The company declared bankruptcy Wednesday. The clients at the meeting reacted with anger, demanding Gateway21 repay them and accusing it of fraud.

Gateway21 officials repeatedly apologized to them.

Although the company mailed a notice of the meeting to 2,000 clients, it only prepared seats for 250 people.

As a result, hundreds of people were left standing outside the building, so the company held a second meeting later.

Gateway21 is not planning to hold any meetings outside Tokyo, company officials said.

A lawyer representing Gateway21 said the company will hold another meeting next year once the bankruptcy becomes official and asked the clients to attend that meeting.

Gateway21 filed for bankruptcy with the Tokyo District Court after incurring about ¥1.29 billion in debt.

The company suspended operations Sept. 26.

According to Gateway21's lawyer, about ¥950 million in tuition and boarding fees paid by some 1,300 people who were planning to go overseas is unlikely to be recovered, even after bankruptcy procedures.

In addition, about 1,000 clients now abroad might have to interrupt their studies because Gateway21 has stopped paying its overseas business partners.