Parents and staff 'distraught' over uncertain future of Canberra childcare centre

Lisa Crystal Marie’s fiancée walked into a scene of chaos outside the Kinder Haven childcare centre in Symonston on Thursday last week.

The previous day, on Wednesday afternoon (24 July), a representative from Canberra firm BAL Lawyers handed out letters to parents as they came to collect their kids, advising that the owners, Genius Childcare, had been given until 5 pm, 26 July, to vacate the premises due to unpaid rent.

“A lot of parents were quite obviously distraught, and staff were distraught, not knowing what was happening either,” Lisa says.

“The operations manager was telling people that ‘everything’s fine, it’s been sorted out, you don’t need to worry’, which obviously is false.”

“We act for the landlord of the above premises,” the letter, dated 24 July, read.

“It is with regret that we write to you to inform you that, due to the operator of Genius Childcare Symonston failing to comply with the terms of the sublease of our premises, our client has been left with no choice but to terminate the sublease.”

Lisa says parents were shocked by the news, and it seems local staff were none the wiser either.

On Wednesday evening, parents received a text message from the centre, which described an “inappropriate letter some of you may have received from an external party”.

“This information was surprising to us, and we are actively looking into the matter,” the text continued.

“Please know that if we had any knowledge of the centre closing, we would have informed you immediately … We confirm that, at this stage, it is business as usual.”

Lisa and her fiancée previously had a “very good experience” with the Symonston centre when it was owned by G8 Education and their eldest daughter, now aged eight, attended. They enrolled their nine-month-old daughter less than two weeks ago.

“For me, it was a comfort – I knew the centre, I knew a lot of the staff,” she says.

She contacted the Genius Childcare head office about the issue and was told they didn’t know about the letter either, claiming the lawyers had sent it to an “old address”.

“We have people from across our whole organisation working on this issue, and hope to have it resolved positively in the next few hours,” the message to Lisa read.

Lisa says the uncertainty is too much for some parents, and “a number have already pulled their children out, regardless of the situation”.

This is not the first time the national childcare provider has been embroiled in financial issues.

In March 2023, parents at a Genius Childcare centre in Perth arrived to find padlocks on the gates and notices on the fences, explaining that the landlord had taken possession due to unpaid rent.

Also, in July last year, a Genius Childcare centre in Melbourne’s CBD ended up in court, owing $4.9 million in unpaid rent and other charges, according to the liquidator’s report. The remaining charges for the lease running to 2025 were also added, bringing the total to $9.07 million.

Last month, the United Workers Union (UWU) took the company to task after employees complained they were receiving pay up to five days late and superannuation contributions weren’t being made. Canberra workers were among the affected.

Genius responded with a plan to address the late payments and establish a “hardship fund” for workers impacted by the late payments, but UWU director of early education Carolyn Smith confirmed that members were still facing pay delays.

“Educators are fed up with the uncertainty from Genius and the broken promises, as well as the impact this is having on families, children and the centres the educators are trying to serve,” she told Region.

“This stress is passed on to families and children when, as we see with the most recent example in Canberra, the instability at Genius results in doors being closed and whole centres being put at risk.”

Genius currently operates more than 30 childcare centres across Australia, and five centres across the ACT, with the others in Bonython, Condor, Gowrie and Gungahlin.

According to the Australian Financial Review, the company was paid $26.5 million by G8 Education in October 2023 to take on 31 centres across the country. Business News Australia reports these centres had brought G8 a combined $3 million loss over the 2022/23 financial year.

BAL Lawyers legal director Benjamin Grady told Region the owner of the Symonston centre had been served a ‘Notice of Default’ in June, followed by a ‘Notice of Termination’ in early July, and the letter was distributed on Wednesday “to ensure staff and families were given notice”.

“Our client hopes that the parties can work together to reduce the degree of disruption that the termination of the lease will cause to staff and families,” he said.

Mr Grady said the landlord has agreed to extend the termination date by a few weeks “so that families have enough time to make alternative childcare arrangements”.

Genius is “disappointed” but remains “hopeful of resolving the situation”, according to a company spokesperson.

“Our highest priority is for the welfare and continued education of children and their families enrolled at our childcare centre in Symonston,” the spokesperson told Region.

“We remain in contact with all impacted parents to keep them up to date with the situation as it develops.”