ABC Learning Centres, the Australian-based parent company of the Busy Bees, Leapfrog and TLC nursery chains, lost A$360m of its value in one day's trading. Shares, which peaked at $8.40 last summer, dropped to a low of $1.15, before closing at $2.14.
The company's shares were suspended from trade last Wednesday as it discussed the sale of part of its business.
ABC's founder and chief executive Eddy Groves and some of the other directors sold their own shares to repay loans they had used to finance the business.
In reports in the Australian press ABC has denied that disappointing results, which showed a 42 per cent fall in profits, sparked the share crisis.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's included
-
Free access to 4 subscriber-only articles per month
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here
