Nursery chain Wind in the Willows is closing two neighbourhood nurseries in Suffolk in the next few weeks because it can no longer afford to run them.
The group will close its 100-place flagship Lowestoft nursery in two weeks' time because occupancy levels have dropped to less than 30 per cent.
The Ipswich nursery, which is registered for 78 places, will also close in early April.
The closures coincide with the end next month of the three-year Government subsidy for neighbourhood nurseries.
Wind in the Willows continues to operate 13 neighbourhood nurseries. It also has a partnership in five children's centres.
Company secretary Brian Pearce told Nursery World that the Lowestoft setting had needed to be running at 60 per cent in order to be a viable business. He said he could not pinpoint one factor for the nursery's failure.
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