The receiver of ABC Learning Ltd, McGrath Nichol, has today announced the findings of its review into the operational circumstances of all 1042 ABC Learning child care centres.
The receiver has announced that an additional 64 ABC Learning centres will join the original 656 centres identified on 26 November as profitable centres.
It is now up to the receiver to determine the way forward for the 720 profitable centres.
The receiver has announced that 55 ABC Learning centres will close from 1 January 2009 and parents will be offered a place for their child in nearby profitable ABC centres or in a small number of cases, centres run by other providers.
The review of ABC Learning child care centres found that 241 centres are unviable under the ABC Learning business model.
Under the Corporations Act 2001 (Section 420A) the receiver has an obligation to maximise the value of the assets. This means that under normal circumstances the 241 unviable centres would be closed.
The Rudd Government believes a number of these centres could be viable under different arrangements. The Government also believes these centres could represent an opportunity to gain greater diversity in the child care market.
The Rudd Government will provide up to $34 million of additional funds to keep the 241 child care centres open into the New Year and if necessary until 31 March 2009.
The Australian Government will make an application to the NSW Supreme Court for a Court Appointed Receiver to be installed to work closely with the Government, landlords, staff and parents to ensure continuity of care for children while options are examined for a sustainable future for in these centres.
21 centres owned and leased by the Department of Defence will continue to operate with Government support while new management arrangements are determined.
The full list of ABC Learning child care centres will be available from 1pm on the company’s website www.childcare.com.au
Further information is available on www.mychild.gov.au or by calling 180 2003.