Childcare chain collapse highlights private credit risks

The report said 152 long daycare services had closed since 2024, with a further 276 services (both long day care and preschool/kindergarten) identified as at risk of closing in the next 12 months.  Anne Hollonds AO says the childcare sector is undergoing a significant adjustment.  (Supplied: Australian Human Rights Commission) Former national children's commissioner Anne Hollonds AO said the childcare sector was undergoing a significant adjustment, driven a number of prominent crises. "I think what we're seeing is a lot of private providers divesting centres or pulling out altogether," she said. For-profit centres dominate the long daycare sector. Most of the growth in recent years has been in private for-profit providers, with a recent report from the Mitchell Institute finding they made up 74 per cent of long daycare places. Ms Hollonds said the sector would be better if it were shared 50-50 between non-profit and for-profit organisations. "We really need to focus on the safety and well-being of children as the priority," she said, adding that she had no problem with for-profit providers as long as their operation was up to scratch. A recent report finds for-profit centres drive substantial instability in the long day care sector.  (ABC News: Kate Nickels) The Mitchell Institute also found substantial instability or "churn" in the long daycare sector was driven by for-profit centres. "Since 2013, about one-third [32 per cent] of long day care services open in 2025 had changed approved provider," the report said. "The rate is higher in for-profit centres where 40 per cent have changed provider, compared to 11 per cent of all other centres." Have you been impacted ? We would like to hear from you! Contact our journalist confidentially on li. yiying@abc. net. au or li. yiying@proton. me.  Finexia shares suspended The seven Shared Beginnings centres arose from the ashes of Genius Early Learning, which operated more than 30 early childhood centres across the country and collapsed under massive debt in March 2025. Finexia said it had since "provided significant financial and operational support, including rebranding, marketing, staffing support and substantial funding to cover working capital shortfalls". The stock exchange suspended Finexia's securities on March 2 after it failed to file multiple periodic reports, including its half-yearly report which was due at the end of February. ASX suspended Finexia's securities this month due to outstanding reports.  (Reuters: Hollie Adams) The company had reported a $5.2 million net loss for the 2025 financial year, which it described as "one of the most challenging in Finexia's history".