Six Edge Early Learning childcare centres will permanently close across South Australia on Friday after failing to secure a buyer, with families given as little as 48 hours' notice.
Edge Early Learning group tumbled into voluntary administration in August this year, with administrators KordaMentha securing buyers for many of the group's centres in SA and Queensland.
However, in a statement today, KordaMentha said they had "undertaken an extensive sale campaign", but had been unable to find a buyer for two centres at Angle Vale and one each at Flagstaff Hill, Mount Barker, Seacombe Heights and Port Augusta.
"Unfortunately, the campaign did not result in any acceptable offers capable of securing the ongoing operation of these services," the administrators said.
The latest announcement follows the closures of 11 other centres across Queensland, SA and the ACT last month.
Three of these centres were in South Australia, including Oaklands Park, Plympton and Royal Park.
Three Edge Learning childcare centres, including at Plympton, closed last month. (ABC News: Marco Catalano)
KordaMentha said not-for-profit giant Goodstart Early Learning had been set to acquire the six centres as part of its initial proposal to buy 31 centres across Australia, but decided against it "during their due diligence work".
"After receiving this advice, the administrators liaised with the other purchasers of the Edge centre network, and other parties who had shown interest in these centres, but unfortunately have not been able to secure an alternative purchaser," the administrators said in the statement.
Families 'scramble' to find alternative care
Affected families were notified of the closures via a letter on Wednesday.
Parents at Edge Early Learning at Flagstaff Hill said they felt sad, frustrated and annoyed at the closures.
Rachael Brooks says she is frantically trying to find alternative care for her daughter. (ABC News: Sharne Wakefield)
Rachael Brooks said she felt a "bit of panic" as she tried to find alternative care for her daughter.
"My daughter really loves it here, all the educators are really good people, I just feel so sad, so sad for them," she said.
"Obviously we've got work commitments and everything else, so a lot of pressure.
"Frantic kind of emails and phone calls, lots of message on the parent groups … feeling really sad and kind of worried about what's going to happen."
Vanessa Edwards said she felt "a little bit annoyed and a little bit frustrated".
"We were given such late notice and just left stranded without any other option,"
she said.
In the letter sent to affected families in Port Augusta, which the ABC has seen, families were urged to collect their belongings before the final day of care on Friday.
The letter also advised any fee payments made in advance would be refunded, and provided parents with details of an alternative option to enrol their children.
Andrew Padgett says the closure will put pressure on working parents. (ABC News: Arjuna Ganesan)
Andrew Padgett said he was shocked and frustrated the Port Augusta centre was closing.
"Shocked at first, then the realisation of how we're going to get care for our three-and-a-half year-old," Mr Padgett said.
"It's 48 hours' notice to get care for your child, it's a strange place to be, to try and scramble.
"If the writing was on the wall, why not tell us a couple months ago, and give us time to prepare.
"I think 48 hours not just for this centre but the other centres in South Australia is cruel, if anything."
Mr Padgett said it would be difficult for some families to find alternative care at short notice, and feared it could lead to families leaving the area.
"It's probably no shock to anyone that it is going to eventually lead to families having to leave Port Augusta and this community due to fact that there's no support," he said.
Port Augusta Council CEO John Banks says the council was notified of the closure this morning. (Supplied: Port Augusta City Council )
In the letter, families were advised to try Port Augusta Child Care Centre as an alternative.
However, Port Augusta City Council chief executive John Banks said the facility, which the council operated, was at capacity.
"Families interested in securing a place at the centre are encouraged to visit council's website and complete a waitlist application form," he said.
"Council is working to increase availability over the coming weeks."
Mr Banks said the council was notified of the closure this morning, and said it would have a significant impact on families, "particularly those who rely on accessible childcare to support their work and family commitments".
"Access to childcare is an important service for our community, and any reduction in available places can create additional pressure for families who may already be experiencing difficulty securing childcare," he said.
South Australia's Premier Premier Peter Malinauskas said he would seek more information about the closures from the federal government.
"Private childcare operators are 100 per cent the responsibility of the federal government and we are seeking urgent information from the federal government about what they're going to do to fix it," he said.
Source: ABC Australia · Madina Jaffari
At a glance
- Topic
- World
- Country
- 🇦🇺 AU
- Publisher language
- EN
- Added to Allnira