Nursery chain collapse costs jobs, affecting 300 children
ATTEMPTS TO FIND A BUYER FAILED
A CHAIN of three nurseries that together care for more than 300 children will close for good after going into voluntary liquidation.
Cherub Nursery in Leads Road, east Hull, Cherub Childcare in Lindsey Place, west Hull, and Cherub Nurseries and Pre-school in Woodmansey Mile, Beverley, will all close tomorrow.
The director of the company says a mixture of not enough children attending in 2019 and this year, coupled with furlough support being reduced from the end of October has left the shareholders with no choice but to close, after attempts to find a buyer were unsuccessful.
A letter sent to all parents says: “Due to losses caused by under occupancy in 2019 and 2020, the shareholders recently took steps to find a buyer of the company as an ongoing concern, but unfortunately this has been unsuccessful.
“Accordingly, with a significant shortfall in working capital forecast for the months ahead, with furlough support being reduced and without a buyer, the shareholders have taken the difficult decision today to close all three sites and inform staff.”
The letter, from the company’s director, also apologised to parents for any inconvenience caused.
The closure means parents will now have to find alternative childcare arrangements, and dozens of staff members have found themselves unemployed.
The closure comes as the Government’s furlough scheme ends on Saturday, which has led the city’s Liberal Democrat councillors to blame coronavirus for the collapse of the nursery chain.
Councillor Alison Collinson for Boothferry area said: “Anlaby Road Cherubs Nursery had worked really hard and had recently got itself back up to a Good Ofsted report, only for this Conservative government to let it be closed permanently by the coronavirus.
“This sends the wrong message. Even if you work hard, this Government doesn’t care.”
The closure comes after the chain hit the headlines in December 2019 after all three were rated as inadequate.
Inspectors witnessed staff ignoring crying babies, unfit for purpose premises, and noted staff who were not properly vetted were employed without references and also without relevant training.
The nursery hit back to the Ofsted bombshell, saying it took the reports seriously and promised parents it would improve.
Since then, Ofsted has revisited. The Leads Road site and the Beverley site were rated as “requires improvement”, while the West Hull site was rated as “Good”.
Quantuma Advisory Limited has been instructed to assist with the formalities of placing the company into voluntary liquidation and any parents who have pre-paid fees for November onward will be sent notice of liquidation.