Genius childcare: 25 centres go into voluntary administration

Administrators have been appointed to handle a number of childcare centres linked to a multi-millionaire director from Victoria. See where and what it means for your household.

A Genius childcare centre. Supplied

Twelve more Genius childcare centres have gone into voluntary administration, making the total now 25.

It follows months of staff complaining of late payments and unpaid superannuation.

The 12 centres under Abacus 49 which are located across Queensland, NSW, ACT, Victoria, and WA, went into voluntary administration on Wednesday.

Last week, Vertical 4 Pty Ltd, which operates 13 Genius childcare centres, also went into voluntary administration.

The Vertical 4 centres are: Hamilton Hill (WA), Lakelands (WA), Mandurah (WA), Newcomb (VIC), Castle Hill (NSW), and Pyrmont (NSW). The two unopened centres are in Eumemmerring (VIC) and Cranbourne West (VIC). The Administrators are operating an additional five centres with sales agreements already executed with a third party, and completion pending, in Mount Albert (VIC), Beaumaris (VIC), Reservoir (VIC), Kenmore (QLD) and Gowrie (ACT).

A number of Genius childcare centres closed suddenly in the past few weeks.

Nicholas Charlwood, Glenn Livingstone, and Alan Walker of WLP Restructuring have been appointed voluntary administrators for both groups.

In a statement WLP said all 12 centres will remain open, with the administrators taking over the centre operations.

“In line with the administration process for Vertical 4, the administrators will continue to trade the centres on a business-as-usual basis while urgently assessing the financial affairs of Abacus 49,” the statement said.

“The administrators’ intention is to commence the process to sell or recapitalise the entity.”

Earlier this week it said it had taken control of Vertical 4, including nine childcare centres, of which two haven’t yet opened. It also took control of centres that are subject to a separate sale agreement entered into prior to the appointment.

“While the administrators examine the company’s financial position, they are focused on stabilising operations and limiting any further disruption of services to families across the country,” it said.

Administrator and WLP Restructuring Partner Nicholas Charlwood said they planned to

“reinstate staff and pay outstanding wages while the administrators urgently seek either a purchaser for the centres or a party to recapitalise the company”.

Darren Misquitta, director of Genius Childcare

“We understand the urgency and concerns parents and staff have about the challenges facing some of the company’s centres,” he said. “We have already engaged in constructive discussions with the company’s lender to extend its debt facility, which if agreed, will provide funding to keep centres open and reopen care services while a sales process is undertaken.”

He said there will be no change to the operations of individual centres unaffected by recent closures.

“We are committed to exploring all avenues to facilitate continuity of care for families, preserve employment opportunities and ensure the company’s ongoing viability.” he said.

A spokeswoman for Federal Minister for Early Childhood Education Anne Aly confirmed they had been made aware from a number of states and territories that some Genius childcare centres were now in administration.

Vertical 4 Pty Ltd Director Darren Misquitta was served papers on behalf of the company last week by the United Workers Union, which is taking action through the Federal Circuit Court on behalf of 57 of its members.

The employees are seeking repayment of unpaid super and penalties for late payment of wages, in what is believed to be a test case.

In a message written by management and leaked to this masthead, it said: “We want to take a moment to acknowledge the uncertainty and concern that news of an administrator being appointed to Genius Learning Pty Ltd may bring. We understand that this is a challenging time and we are committed to keeping you informed and supported throughout this process.”