Groves leaves ABC amid financial uncertainties
The founder of the world's largest childcare company, ABC Learning Centres, stepped down as its chief executive last week.
The departure of Eddy Groves and his wife Le Neve Groves, who have both left all their board and management positions, follows ongoing problems for the business, which has been beset by financial difficulties since March when its share price fell dramatically.
Meanwhile, Australian press reports last week said that ABC would appear before the Australian Industrial Relations Commission in Sydney amid allegations by a trade union that the company illegally reduced staff hours.
The Liquor, Hospitality and Miscellaneous Union said it had received complaints from childcare workers in ABC centres about their hours being cut.
In August, ABC announced a pre-tax annual loss to the end of July of A$437m (£204m, News 14 August).
Shares in ABC Learning have been suspended since 21 August after the company missed the August deadline to release its full financial results for 2008.
Last month, the company said it would release the results at the end of September (News, 18 September), but last week that was put back to October.
ABC has appointed as interim chief executive Rowan Webb, who was previously managing director of retail group Colorado. He will receive a salary of dollars A133,333 a month.
ABC also revealed last week that it had bought childcare recruitment business 123 Careers for dollars A70m.
In a statement, the company said the buyout would allow ABC to reduce the cost of finding relief, agency and permanent staff, and to gain a 'significant pool of potential employees and streamlined recruitment systems. It will also enable ABC to place a greater focus on recruiting permanent staff over agency staff to further improve the quality of early childhood education and care'.
ABC is the owner of the UK's largest nursery group, Busy Bees.
