ABC possibly entering voluntarey administration

[Mother Goose]

*Please do not make this thread into a bashing on the ABC Centres*

I know a lot of parents on BB have their children in ABC Centres... so do we. Yesterday there was stuff in The Age about the company possibly going into volantary administration or receivership and a letter came home from the centre stating the same... normally letters we get make a feeble attempt to reassure us the centre will stay open and there is no danger of it closing... this one didn't.
This morning there is another article in The Age about the company's woes... I'm starting to get very worried about it all. I can't help but worry about the centre being closed and not having someone to care for DD. We're not in a position for me to not be working at the moment and (unless we moved right now) I'm not convinced we could get DD into another centre straight away. The only other centre near us who could take her right away was less than ideal (to be kind) when we tried her there earlier in the year.

What are other ABC parents/workers feelings on what is happening? Have you guys heard anything more?

MG

[*Ali*]

I did hear this on the news too, I am sure that I also heard something about they government being asked to step in to assure the places stay open.
I really hope they do manage to find a way to ensure the centres stay open, there are just way to many children in care at ABC centres for them to close them all down.
Good luck, and I will keep my fingers crossed that something is worked out.

[Nai]

It would be a national disaster if that many centres closed so I firmly believe that the goivernment will prop the company up with the administrators until the centres can be sold off. Hopefully the government won't allow the centres to be sold as a whole and they will sell them off individually as it is clearly not in the best interests of the children and the industry to have so many centres controlled by the one company. Hopefully many of them will return to being independant centres as they were in the past before ABC bought them out.

[Pandora]

I saw a news report about this last week.
It was along the lines of they are hoping the govt will step in, not to save the company, but to find alternative adminstation for the centres, private, not for profit or council, so they can stay open.
Its not like they arent being used - with a nation wide shortage of childcare places theyd be crazy to close them.

DS' centre is not an ABC one but there are 15 in Wyndham (point cook, tarneit, hoppers crossing werribee etc..) thats a LOT of centres and childcare place gone if they simply colsed them all.

[bon]

Nearly every child care centre here is an ABC one - there are only 2 that I can think of that are not. If they closed it would be a disaster for parents, so the government is going to have to do something. I can't help feeling like this should never have been allowed to happen - one company buying out and controlling the majority of child care centres in Australia and turning child care into a 'for profit' enterprise. And now of course the whole thing has come crashing down, leaving children and parents the losers.

[Rouge]

I'm not bashing the centres, but I hope the govt learns from this and NEVER lets one company dominate the market as much as ABC has. There will have to be a big bail out, they should have seen this coming. I know I did. I hope jobs and families do not suffer too much.

[Arimeh]

Gee I hope they don't do anything too drastic.. its one Miss M goes to - there are two centres in Nambour alone....

[Nai]

Update

ABC child care goes under


* November 6, 2008 - 11:56AM


ABC Learning's board has appointed voluntary administrators Ferrier Hodgson whose first task will be to see if the company can be saved.

The company's banks, which together are owed an estimated $850 million, also brought in insolvency experts Chris Honey from McGrathNicol as receivers this morning to protect their interests as the main secured creditors.

Mr Honey said in a statement that ABC's child-care centres would remain open.

"It is our intention to manage this process smoothly, and avoid disruption to families,'' Mr Honey said.

He is expected to release details of the plan to ensure centres continue trading at a press conference later today.

Insolvency firm PPB was appointed to look after the interests of the Federal Government, which subsidises the care of more than 100,000 children at ABC's centres.

"The board and current management team are disappointed to be in this position despite the efforts of so many staff and the continued support of parents,'' chairman David Ryan said in a statement today.

The cave-in came a day after ABC attempted to reassure parents and investors by saying that talks were continuing with its banks and the government.

Ferrier Hodgson partner Peter Walker took the reins of the empire which was once worth more than $4 billion and will attempt to see if there is any way to save the company through a restructure.

[Karina]

This has been on the cards for quite a while now. I heard about it a while ago.
I hope for those of you that use an ABC centre, that the centre do stay open and theres no big hassles and disruptions for you.

[ClareBear28]

I too hope that the parents and children are not inconvenienced by ABC's demise. And without 'bashing' ABC Learning, it was always bound to happen eventually. Lets hope that alot of people learn from the many mistakes that have been made by allowing ABC to become the problem that it now is.

[tan32]

I will be watching this with great interest, the centre my DS1 went to used to be an indepenent but was brought out by ABC, we were looking at using them again if i have to return to work.

[Tobily]

It would be a national disaster if that many centres closed so I firmly believe that the goivernment will prop the company up with the administrators until the centres can be sold off. Hopefully the government won't allow the centres to be sold as a whole and they will sell them off individually as it is clearly not in the best interests of the children and the industry to have so many centres controlled by the one company. Hopefully many of them will return to being independant centres as they were in the past before ABC bought them out.

I agree. There are just far too many of them now for the government to allow it to happen. I live in the middle of Brisbane and there are only two centres in my immediate area alone that they do not own. It would be a national panic.

Absolutely agree on your point about them being sold off independently too Nai. Hopefully this is a lesson to all concerned about allowing an essential service to be completely monopolised by private interests and floated on the sharemarket

[Chocaholic]

The government has already started developing an action plan, from what I have heard, to ensure that no centres close down. They will not allow the ABC centres to close, simply because of the economic impact it would have on Australia if a parent had to leave work, either short or long term, to provide care for the child until they were able to place them in another centre.

[Peach]

One simple solution is to turn them all into not for profit community based centres... How wonderful would that be!!!!

[Crystalwings]

It's very scary for the industry, especially now that another CC provider cfk is also going under. Without bashing ABC I also agree that it should never have been allowed to happen. As someone who works in the industry let me just say that there are lots of great independent private CC providers where the quality of care is just as good as community based and some are even better. Private CC has come a long way and is subject to rigorous licencing and accreditation proceedures. Unfortunatly ABC has contributed to the negative image lots of people have in regard to private CC which is a shame, they shouldn't all be put in the same category.

[Peach]

Olives Mummy :: To me .. profit shouldnt be allow in child care .. and all private centres make a profit and that money should go back into providing resources for the kids .. I have never ever in my 12 years of child care heard another co worker say " We just have too many supplies .. or we have too many toys". I absolutley loved my job .. but the lack of money put into child care is what made me hate it.

[Crystalwings]

Serenity,
I respect what your saying but I feel all the negative publicity about private CC only creates a gap between the two sectors when we should be working together. All CC workers should be looking after the best interests of children whether they are private or community based and I think it's wrong to say that one does a better job then the other. The Centre where I work is extremly well resourced, over staffed and due to accreditaion there is a certain standard that must be maintained. ABC does'nt represent good quality private CC due to their size although I know a lot of parents are happy with them. Your right about the lack of money in CC but it is an extremly rewarding job as well and both types of providers need eachother to meet demand which is why we must work together to get the government to do more for the industry.

[Mother Goose]

Can I please just ask that people keep this thread to issues for parents about ABC going into receivership and not make it into how wrong it is/was for ABC to dominate the industry. I meant for this thread to be a support for parents whose children are enrolled in ABC and who rely on the care provided by these centres - not a debate about the good and evil of Public Vs Private Child Care or anything else. I'm not saying that your thoughts and points aren't valid because they are, but I want ABC parents to be and feel supported.

Thanks

MG