Latest on Welcome Nurseries: Group sells 26 settings as it goes into administration

The group previously had at least 48 settings, largely in the North of England and the Midlands, and employed 750 people, providing more than 5,000 childcare places.

As we revealed on Tuesday, six nurseries have recently closed.

Nursery World understands that an 81-place nursery in Mansfield has also now closed.

On 8 August, Asher Miller of Begbies Traynor, working with Paul Weber of Leigh Adams, was appointed as joint-administrator to conduct the pre-packaged administration of Welcome Nurseries.

In a statement, Begbies Traynor said, ‘Following a period of rapid expansion, Welcome Nurseries currently operates 32 sites across the north of England. The extensive period of disruption and uncertainty caused by the global pandemic left the business unable to meet its ongoing operating costs and repay the deferred consideration owed following the acquisitions completed pre-pandemic.

‘Together, the Joint Administrators were able to secure the sale of 26 of the sites, in a very short period of time, through a pre-packaged administration sale to the Harp Group, newly set up by the successful entrepreneur, Simon Fox. The acquisition, which has the support of Linda Cuddy, the founder of Welcome Nurseries, completed on 8 August 2022 and saved the jobs of over 300 dedicated staff and ensured the seamless ongoing nursery care for around 450 children.'

It is not known if Cuddy is staying on as part of the leadership team. Nursery World has contacted Cuddy for a response.

The statement continues, ‘Despite a positive outcome for the majority of the sites, six were unable to be purchased by the Harp Group meaning they have had to be closed. Where possible, Welcome Nurseries will support families seeking alternative arrangements for those children affected.’

Asher Miller, a Joint Administrator from Begbies Traynor, said, 'I am so pleased to have been able to secure a quick and positive outcome for the majority of the staff and children at Welcome Nurseries. Simon is an experienced business operator and is passionate about education and I have no doubt that the 26 nurseries acquired by the Harp Group will continue to flourish and to provide first-rate education to their many children.'

Simon Fox, director of Harp Group, said, 'I am delighted to have been able to take this opportunity to acquire Welcome Nurseries. We are excited about investing in putting Welcome back on a sound financial footing and re-establishing it as one of the foremost nursery groups in the UK, building on the hard work and experience of Linda Cuddy and her team.’

Nurseries in Alfreton, Enderby, Leicester, New Ollerton and Wellingborough have all been rescued as part of the deal, according to the Business Desk, but Harp Group did not buy the Crow Hill Drive setting in Mansfield.

Nursery World understands that staff working for Welcome have been informed that the company has gone into administration and await further details about their employment.

According to Nursery World’s Nursery Chains, published in March, Welcome Nurseries operated 48 settings and was registered for 5,125 childcare places, with a further four nurseries in the pipeline.

What is a pre-packaged administration sale?

Pre-packaged or pre-pack, administration is a formal insolvency procedure, where a company is put into administration. It involves selling the business or part of the business, or its assets, to a pre-agreed buyer. It is a formal procedure that enables an insolvent company to sell its assets to the existing directors, a trade buyer or another third party.

It is different from conventional company administration in that the sale of assets is pre-negotiated before an administrator is appointed. In a regular administration the administrator starts marketing the business for sale to potential buyers after being appointed.

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