The operator of three Sunshine Coast childcare centres has entered voluntary administration, after signs of financial pressure emerged at the company earlier this month.
Embattled childcare provider Edge Early Learning, which has centres at Aroona, Peregian Springs and Peregian Breeze, issued a statement on its website confirming KordaMentha had been appointed as administrators of the group.
Edge operates 70 centres across Queensland, South Australia and the ACT, but said none had closed as a result of the administration.
“We are continuing to operate all centres on a business-as-usual basis,” the statement said.
“There will be no change to your care arrangements, centre opening hours or staffing. Families should continue to attend their centre as normal.”
The administration follows signs of financial trouble. ASX-listed landlord Arena REIT revealed on August 10 that Edge had sought a deferral or reduction in rent in late July while pursuing a corporate restructure.
Edge leases 31 Arena-owned early learning properties across Queensland and South Australia, accounting for about 14 per cent of the property group’s annual rental income.
Arena said Edge had paid all rent due to July 31 but failed to make a payment due on August 3, prompting default notices to be issued the following day.
Its forecasts for the 2027 financial year excluded rental income from the organisation.
Edge said the administrators would now review the business and work with key stakeholders to determine its future.
“Our immediate focus is to maintain the safe and ongoing operation of each centre while this urgent review is undertaken,” it said.
“We are working with management and will be supporting centre staff to minimise any disruption.”
However, Edge warned that some excursions, events and special activities could be reviewed or adjusted during the administration period.
Families would be notified of any changes.
The company said the voluntary administration process was expected to take several weeks, with updates to be provided as significant developments occurred.
The financial troubles come amid wider pressures across Australia’s early childhood education and care sector, despite billions of dollars in government funding aimed at workforce shortages and affordability.
In June, the Federal Government committed another $3.6 billion to extend the Early Childhood Education and Care Worker Retention Payment until June 30, 2028. The payment supports a 15 per cent wage increase for eligible workers.
Since January, families eligible for the Child Care Subsidy have also been guaranteed at least 72 hours of subsidised care a fortnight, equivalent to three days a week.
But major private operators continue to report difficult trading conditions.
On Tuesday, Australia’s largest for-profit childcare group, G8 Education, reported a multi-million-dollar hit from the closure of underperforming centres.
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The organisation, which operates 350 centres across Australia for more than 29,000 children under multiple brands including Buggles, Bambinos and Early Learning Services, said it had managed to stabilise its workforce, with vacancy rates low at two per cent.
The group made a first-half bottom-line net loss of $38.8 million for the six months ended June 30, down from a profit of $22.5 million in the prior calendar period.
