ECE Company fails

SYDNEY – Approximately 55 childcare centres are expected to close by the end of the year in Australia.

ABC Learning in Australia has experienced for the past three months a fiscal roller-coaster ride in a quest for survival.

ABC NZ centres are not involved nor part of the Australian receivership.

The organisation has had a spectacular rise in business fortunes to be the largest publicly listed childcare operator in the world, based on centre numbers.

It was listed on the Australian Stock Exchange in 2001 with a market capitalisation of approximately $25 million. The company acquired through a combination of natural growth and decisive acquisitions with businesses operating in Australia, UK, USA and NZ.

About 4000 children attending the doomed 55 centres will have no option other than to look for enrolments in new centres in the new year.

The receivers are planning to administer 720 centres which are operating profitably. The education minister, Julia Gillard indicated that the centres will not be sold to single entity, thus allowing for security in ownership and also looking for a diversity of proprietorship within the sector.

A further 240 non-viable centres will be taken under the umbrella of Federal Government with a $34m ($NZ41m) price tag attachment until 31st March if required.