Genius childcare: 13 centres go into voluntary administration

Administrators have been appointed to handle a number of Genius childcare centres. See what it means for families and staff affected.

A Genius childcare centre. Supplied

A number of Genius childcare centres have gone into voluntary administration, following months of staff complaining of late payments and unpaid superannuation.

On the ASIC website it shows that Vertical 4 Pty Ltd went into administration on March 13.

The organisation is responsible for 13 Genius childcare centres across NSW, Victoria, Queensland and WA.

They 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).

Nicholas Charlwood, Glenn Livingstone, and Alan Walker of WLP Restructuring have been appointed voluntary administrators of Vertical 4 Pty Ltd.

“Administrators were appointed by the company’s secured creditor and have now taken control of the company and its assets, including nine childcare centres, of which two haven’t yet opened,” WLP said in a statement.

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

“The administrators will also operate three 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.”

Administrator and WLP Restructuring Partner Nicholas Charlwood said that the administrators have immediately moved to extend the company’s debt facility.

“This is intended to allow the centres to resume trading, reinstate staff and pay outstanding wages while the administrators urgently seek either a purchaser for the centres or a party to recapitalise the company,” Mr Charlwood said.

“We understand the urgency and concerns parents and staff have about the challenges facing some of the company’s centres. 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.

Darren Misquitta, director of Genius Childcare

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.”

More to come

Originally published as Genius childcare: 13 centres go into voluntary administration