Dozens of families in the lurch after childcare centre’s sudden collapse

A Melbourne childcare centre has appointed liquidators and shut its doors after failing to find a buyer, leaving dozens of families without care.

Avondale Heights Childcare and Early Learning Centre in the city’s north-west has closed down after liquidators of SBS Advisory took control of the business, according to a notice published by ASIC.

Administrators had initially found a buyer for the business and had entered into a contract of sale.

However, the centre was forced to close after the purchase fell through.

A letter from liquidator Glen Spooner was sent to parents and caregivers on Tuesday evening, giving them just hours to find alternative childcare for Wednesday.

The closure has left 25 educators without a job.

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It is understood around 70 children attended the centre.

Staff were seen crying as they returned to the premises to collect belongings and say goodbye to the children on Wednesday.

A note was taped to the front gates informing families of the immediate closure.

“When I picked up my son yesterday evening, everything seemed fine,” one parents told 9News.

A former staff member, who had worked at the centre for nearly nine years, said even the workers had no idea how dire the situation had become.

“It’s really heartbreaking for me to see the parent crying and the children crying in front of this centre, because they do not deserve this,” she said.

A spokesperson for SBS Advisory said the centre was closed effective immediately due to the business’s financial position and concerns over “continuity or care”.

“Unfortunately, given the circumstances, and a number of recent staff resignations, the directors were not confident that appropriate staffing levels and continuity of care could be maintained and therefore determined that the centre should close immediately,” Spooner said in a statement.

“At the same time, the financial pressures facing the centre had reached a point that could no longer be sustained.”

Families and staff were made aware of the company’s potential sale, Spooner said.

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“The directors had been personally funding the operation of the business for an extended period and could no longer continue to personally fund the operation of the business,” Spooner added.

“We know that families have placed their trust in the centre to care for their children and that this sudden change may be difficult.

“On behalf of the centre, we are deeply sorry that the centre had to close in this way, and we recognise the uncertainty and disruption the sudden closure has caused both families and staff.”

Nearby childcare centres have contacted parents to offer spots for affected children, including Little Stars Early Education Centre in Avondale Heights and Goodstart Early Learning Keilor Village.

“We understand this is a very difficult and unexpected situation for families, and our team is aware of the circumstances,” a spokesperson for Little Stars Early Education Centre said in a post on Facebook.

“We are ready to assist families with the transition and will be responding to emails and enquiries as quickly as possible.”

Avondale Heights Childcare and Early Learning Centre was open from 6.30am to 6.30pm and described itself a “warm, family-run childcare”.

Nine.com.au has contacted SBS Advisory for comment.

It comes as Australian childcare provider Edge Early Learning collapsed into voluntary administration on Wednesday, risking the closure of up to 70 childcare centres across the country.

The education provider operates 70 childcare, kindergarten, and preschool centres across Queensland, South Australia, and the ACT.