Dozens of childcare centres across the country have entered voluntary administration as staff have reportedly been left without pay and up to $7m in superannuation alone as the boss’ whereabouts remains unknown.
Vertical 4 Pty Ltd, a company that operates 13 Genius Childcare centres, went into administration on Monday while 12 centres under another linked company Abacus 49 across Queensland, NSW, ACT, Victoria, and WA entered voluntary administration on Wednesday.
This brings the total centres under administration to 25.
It comes as Genius Childcare boss Darren Misquitta and several of his companies owe about $38m in debts to suppliers, landlords and even the government with Vertical 4 Pty Ltd facing a $10.32m tax bill, according to The Sydney Morning Herald.
He is also reportedly missing and has failed to respond to media inquiries about his company’s dire position.
At least three centres under the Vertical 4 brand across Western Australia entered administration alongside six in Victoria, two in NSW and one in both Queensland and the ACT.
Two of these centres in Victoria have not yet opened while five have sale agreements already executed with a third party.
WLP Restructuring has been appointed the voluntary administrator for both groups and said it will keep all 12 centres that were forced into administration under Abacus 49 open.
“In line with the administration process for Vertical 4, the administrators will continue to trade the centres on a business-as-usual basis while urgently assessing the financial affairs of Abacus 49,” a statement from WLP said.
“The administrators’ intention is to commence the process to sell or recapitalise the entity.”
WLP partner Nicholas Charlwood said the administrator plans on reinstating staff and ensuring outstanding wages are paid while it looks for a buyer to “recapitalise the company”.
“We understand the urgency and concerns parents and staff have about the challenges facing some of the company’s centres,” Mr Charlwood said in a statement after Vertical 4 entered administration.
“We have already engaged in constructive discussions with the company’s lender to extend its debt facility, which if agreed, will provide funding to keep centres open and reopen care services while a sales process is undertaken.”
He added there will be “no change to the operations” of the centres and stressed the administrator was “exploring all avenues” to ensure the centres continue to operate as a care facility and preserve employment opportunities.
“The Administrators will re-establish transparent and timely communications with all centre managers, staff, parents and stakeholders so that everyone is informed during the process.” Mr Charlwood said.
Mr Misquitta was served papers by the United Workers Union last week in the Federal Circuit Court on behalf of 57 of its members over unpaid super and penalties for late wages payments by Mr Misquitta and several of his companies.
UWU National President Jo Schofield said it “seems ludicrous … Darren Misquitta can walk through this mess without taking any responsibility”.
“While the administration is taking place in some centres, other centres are on a wing and a prayer waiting for supposed takeover,” Ms Schofield told The Age.
