HEI Schools’ childcare centres in Lara, Norlane, and Armstrong Creek liquidated owing $2.4m

Three childcare centres in Geelong have been liquidated owing a significant amount of money to staff and creditors after only being open for less than five years.

Kam Ming Yu (left) is the director of all HEI Schools in Victoria, including the three in Geelong that have been liquidated. Picture:

Three Geelong childcare centres owned by the same company ran up a debt of $2.4m in less than five years, new documents reveal.

Finnish Early Childhood Education centres in Lara, Norlane, and Armstrong Creek were all dissolved as part of a larger liquidation of franchisor HEI Schools Australia.

The business – which was split into 16 different entities – operated 11 centres across Victoria and New South Wales and was wrapped up for owing creditors and staff $17.5m.

Australian Securities and Investments Commission (ASIC) documents list Hong Kong born Kam Ming Yu as the sole director of the company.

ILO Norlane Early Education Centre racked up a $615,000 debt – of which $575,000 was owed to the Deputy Commissioner of Taxation – while Armstrong Creek Early Learning Centre, which was shut down before the liquidation, had a debt of $50,000.

ILO Norlane Early Education Centre hemorrhaged money since opening in September 2020. Picture: Alison Wynd

However, HEI Schools Lara Early Learning Centre on Buckingham St found itself in the biggest financial hole.

It was ordered to wind up by the Federal Court back in October 2024 and Nicholas Giasoumi of Dye and Co was appointed liquidator.

It had just $5200 in the bank at the time and owed more than $1.3m to 29 separate creditors as well as nearly $370,000 to 23 employees for unpaid superannuation, annual leave, and payment in lieu of notice.

Mr Giasoumi alleged that the Lara centre, which was the recipient of both state and federal government grants, had been engaging in insolvent trading worth $840,000 since May 2022.

In a report lodged on ASIC, Mr Giasoumi said the director attributed the company’s financial woes to a number of external factors.

“COVID-19 pandemic restrictions that commenced in March 2020, only months after

the centre had commenced its operations in December 2019 … suppressed enrolment,” Mr Giasoumi said.

“This resulted in high staff turnover and high cost of labour.”

HEI School Lara was placed into administration to save the businesss but, three weeks later, it was ordered to be liquidated by the Federal Court. Picture: Alison Wynd

Mr Yu also identified “delays in construction in nearby new residential estates” as reason for the poor occupancy rates, which Mr Giasoumi said never exceeded more than 50 per cent.

Speaking to the Geelong Advertiser, Mr Giasoumi also said “excessive overheads” and “expanding too quickly” played a role in the centre’s fate as well.

It was bought by Vantage Education Pty Ltd for $1.2m in November 2024 and renamed Kidscape Lara, re-employing a “majority” of staff.

However, it hasn’t all been smooth sailing for the new owners.

Last month, the Geelong Advertiser revealed that the Department of Education was investigating complaints of children being bitten and bruised at the centre.

A Department of Education spokesman said he was “aware” of the issue.

“The safety of children is our number one priority, and our early childhood regulator takes all notifications seriously,” he said.

Originally published as HEI Schools’ childcare centres in Lara, Norlane, and Armstrong Creek liquidated owing $2.4m