Bids start to roll in for ABC Learning childcare centres

The receiver for the 241 unviable ABC Learning childcare centres says he is happy with the level of interest in the businesses, after the deadline for non-binding bids closed on Saturday.

Receiver Stephen Parbery from insolvency firm PPB received around 640 expressions of interest in the centres, which were split from the 720 profitable ABC Learning centres and placed in a separate vehicle late last year.

While it is not known how many of these expressions of interest have turned into bids, at least two bidders have shown their hands: Queensland childcare group C&K and a group called Century 21, which is a syndicate of non-profit childcare operations, charities and a community bank associated with Adelaide and Bendigo banks.

But while Century 21 has bid for all 241 centres, C&K has only bid for half – its chief executive Barrie Elvish claiming that exorbitant rents being paid by many of the centres makes turning them around close to impossible.C&K’s bid is also dependent on the Government providing some sort of transitional funding.The 720 profitable centres will be placed on the sale after the 241 unviable centres are sold.

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For a full wrap up of ABC Learning’s travails, go to SmartCompany’s special ABC Learning page.