More Bad News from Australia
Long after ABC Learning Centres declared bankrupcy, bad news continues to flow with continued concern over the fate of 72o centres and 12,000 child care jobs.
“The nation’s largest childcare provider went into receivership late last year with debts of more than $1 billion.
Court-appointed receivers have since found operators to run most of the 241 centres, known as the ABC2 group, which were deemed unviable.
Nineteen centres, mostly in NSW and Victoria, were forced to close.
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Australian Community Children’s Services said centres had acquired long-term leases at above market rents, a legacy of the ABC business model.
National convenor Prue Warrilow believes the remaining 720 viable ABC Learning centres are in the same situation.
“We are really concerned that there will see many more ABC centres close because the operators are locked into long-term rents,” she told AAP.
“And it doesn’t bode well for the government wanting to ensure a high quality and viable childcare sector into the future.”
A Senate committee inquiry is in the process of looking at the provision of child care in Australia.”
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