Thousands of families across Australia have been thrown into chaos this week following dual disruptions in the early childcare sector, where one major national provider entered voluntary administration and an independent Melbourne centre shut its doors abruptly with less than a day’s notice.
The larger disruption affects families enrolled at Edge Early Learning, a multi-state provider that serves communities across Queensland, South Australia, and the Australian Capital Territory. Last week, the company confirmed it had appointed restructuring firm KordaMentha as voluntary administrators to carry out an urgent review of the provider’s financial and operational standing.
In a public statement addressing concerned parents, Edge Early Learning Chief Executive Chris Chambers emphasized that administrators are working closely with existing management to keep all centres running as close to normal as possible during the review period. “At this stage, all centres are expected to continue operating as usual and families should continue to attend their centres,” Chambers said. “We understand that this news may cause concern, and we want to reassure you that our immediate priority is to ensure the ongoing operation of all centres with as little disruption as possible to children, families and educators. The Voluntary Administrators’ intention is to provide a stable environment for children while we work through this process.”
David Johnstone, the lead KordaMentha administrator assigned to the case, echoed this commitment, noting that the care, safety and wellbeing of enrolled children remain the highest priority throughout the entire administration process. He also confirmed that families should continue sending their children to their regular Edge Early Learning centres while the urgent operational assessment is completed.
In a separate, more disruptive development, a standalone Melbourne childcare centre, Avondale Heights Childcare and Early Learning Centre, closed permanently on Tuesday with only 12 hours’ notice to parents. Liquidators from SSB Advisory, the firm appointed to wind down the centre’s operations, explained that the shutdown came after a planned sale of the business fell through when the prospective buyer was unable to complete the transaction. The centre’s directors had been covering operating costs out of their own pockets for an extended period to keep the facility open, but could no longer continue to subsidize operations, the liquidator confirmed.
“On behalf of the company, I sincerely apologise for the distress and inconvenience caused by having to arrange alternative childcare arrangements at such short notice,” the liquidator said in a statement sent to parents overnight. SSB Advisory has yet to issue further comment on the closure beyond the initial notification to families.