Childcare group G8 Education, which last year was rocked when one of its staff was charged with child abuse offences, has announced 40 centres will close across Australia, leaving thousands of parents looking for alternative care arrangements.
G8 employs 8800 staff and about 36,000 children are enrolled at its 395 childcare and early learning centres.
They include Headstart, Jellybeans, Kool Kids and Kindy Patch Kids.
The ASX-listed company made the announcement on Wednesday before its annual general meeting.
Victoria and WA will each lose 12 centres, while NSW, Queensland and South Australia will also have closures.
Joshua Dale Brown was last year charged with more than 70 child sex offences against eight children aged under two.
The alleged abuse happened at five G8 centres, as well as three other centres, between April 2022 and January 2023.
Chief executive Pejman Okhovat told shareholders that cost of living pressures continued to influence family decision making, while “serious incidents reported nationally, rightfully led to heightened regulatory scrutiny, and an enhanced focus on safety across the sector”.
“These incidents impacted family confidence and trust across Australia,” he said on Wednesday.
“While our focus remains on supporting families and team members during this incredibly difficult time, we continue to do everything we can to give authorities the best chance of achieving justice for the families involved.
“Because this matter is currently before the courts, it is not appropriate for me to comment further on this matter.
“Safety first and always is one of G8 Education’s core values, and it shapes every decision we make.
“There is no higher priority than the safety and wellbeing of children in our care and we have zero tolerance for any behaviour
that compromises their safety.”
CCTV was rolled out across G8’s facilities in July.
In a statement, G8 described the closures as a “suspension”.
The company said it would consider longer-term options for those centres, including lease surrender, divestment or another alternative.
