Childcare millionaire’s $94,000 grocery bill and $10 million tax debt

A $94,000 grocery bill is among an estimated $38 million in debts pursued by suppliers, landlords and even a radio station against embattled Genius Childcare boss Darren Misquitta and the companies he controls.

But the unpaid bill from supermarket giant Coles is dwarfed by how much the Australian government says it is owed by one of the Genius-related companies, Vertical 4 Pty Ltd, which went into administration last week. The Tax Office says the company, formerly known as Genius Learning, owes it nearly $10.32 million.

Darren Misquitta, director of Genius Childcare.

FM radio broadcaster Nova is also chasing one of Misquitta’s companies for what it says is an unpaid bill for more than $50,000 of on-air advertising.

These big-name companies are not the only groups chasing Misquitta and his companies for outstanding debts, as another one of his firms, Abacus 49, which runs 12 Genius-branded centres in Victoria, NSW, the ACT, Queensland and Western Australia, went into administration on Wednesday.

An analysis of known debts from liquidator reports, the CreditorWatch portal, ASIC searches and public reporting shows that Misquitta – who holds 37 company directorships – and his complex web of corporate entities have debts that might top $38 million.

The entrepreneur’s current whereabouts are unknown, and he has not responded to multiple attempts by this masthead to contact him.

The Genius education business owns its centres through several different companies, which are in varying states of financial distress.

Sydney-based administrators WLP Restructuring last week took control of Vertical 4, which runs 15 of the 39 Genius Centres around the country, and say they are trying to extend the company’s borrowing capacity to keep the daycares running and pay outstanding wages.

But the United Workers Union, which is chasing Misquitta and three of his companies through the courts for $7 million in alleged unpaid superannuation, say staff at the Taylors Lakes centre in Melbourne’s west have not been paid since early February.

Taylors Lakes and Altona North are the two Victorian centres run through Abacus 49 and administrators said they would be working to keep the daycares operating.

The union’s national president, Jo Schofield, called on the chain’s owner to take responsibility for his workers.

Companies owned by Genius Childcare boss Darren Misquitta owe millions of dollars.Credit: Joe Armao

“It seems ludicrous Genius Early Learning director Darren Misquitta can walk through this mess without taking any responsibility,” Schofield told The Age on Wednesday.

“While the administration is taking place in some centres, other centres are on a wing and a prayer.

“In Genius Taylors Lakes, educators have not received their fortnightly pay that was due on February 21, they have not received their pay that was due on March 7 and they are due to be paid again on Friday.

“I would ask if many people could live without six weeks of pay, yet these are the depths educators are facing because of cowboy behaviour on the part of Genius.”

Coles has not responded to questions about the debts it is seeking to enforce, and the Tax Office declined to comment, citing privacy and confidentiality agreement.

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