Nursery chains: Sales could save some nursery jobs
Simon Vevers
Wednesday, November 7, 2007
Administrators for the parent company of the Primary Steps chain, which became insolvent in the summer, have found potential buyers for 16 nurseries, although a further 11 are being closed.
Henry Shinners, one of the joint administrators from the firm Smith and Williamson, said that offers had been accepted subject to contract and the sales could save 165 jobs and more than 700 childcare places.
Of the remaining 11 nurseries, eight are located in Next Generation health and fitness clubs. For 'contractual reasons' they can only be sold as one entity. Mr Shinners said that a major national childcare provider had shown an interest in these facilities but negotiations had foundered.
There was an angry reaction from parents and disappointment among staff at the sudden decision to shut nurseries in York and Chorley, Lancashire, with just a week's notice.
Heather Marsland, head of early years and extended schools in York, said, 'We were appalled that they were going into administration, so our family information service went down on to the site to support families to find provision either with childminders, other day nurseries, playgroups or nurseries in schools.'
Senior officers in York City Council have met to discuss ways of ensuring that parents who have forked out hundreds of pounds in advance nursery fees do not have to wait to see if they will be compensated by the administrator. One option being examined is for the local authority to meet childcare costs for a month when a child starts at a new nursery.
The council has also supported staff who have lost their jobs by ensuring their details are passed to other local nurseries with vacancies.
Heather Marsland said the council had also written to the administrators, expressing its dismay that it had not been informed earlier about the nursery chain's difficulties so that it could have minimised disruption to parents, children and staff.
Mr Shinners said the Creative Education Corporation (CEC), which owns Primary Steps and went into administration on 17 August, had largely expanded the chain by acquisition. He added that its directors 'have acknowledged that they failed to adequately understand the financial and operational challenges that the integration of the different acquired businesses would have on CEC'.
