Childcare group G8, which was rocked last year when one of its workers was accused of child abuse, has confirmed 40 of its centres will close across the country.
The decision will see about 10 per cent of G8’s centres close and will leave thousands of parents scrambling to find new childcare arrangements.
Some 36,000 children are enrolled in G8 Education’s 395 childcare and early learning centres across Australia, under well-known brand names such as Headstart, Jellybeans, Kool Kids and Kindy Patch Kids.
The stock exchange-listed operator on Wednesday made the shock announcement that it would close 40 centres, ahead of its annual general meeting of shareholders in Brisbane.
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On Wednesday evening the operator released a list of the centres closing.
Victoria and Western Australia are most impacted with 12 centres shutting in each state, while NSW, Queensland and South Australia will also have closures.
Victoria
Community Kids Bayswater Early Education CentrePenguin Childcare EppingCasa Bambini BlackburnCommunity Kids HorshamCreative Garden Early Learning Point CookGreat Beginnings Mt ClearGreenwood ScoresbyKindy Patch ChelseaPenguin Childcare ParkvillePoint Cook World of LearningSpringvale 2 World of LearningThe Learning Sanctuary Cranbourne West
Western Australia
Buggles Child Care — BaldivisJellybeans Child Care BelmontJellybeans Child Care AttadaleBuggles Child Care — BeckenhamBuggles Child Care — SuccessGreat Beginnings BayswaterGreat Beginnings BeckenhamGreat Beginnings BunburyGreat Beginnings Secret HarbourGreat Beginnings YangebupJellybeans Child Care WembleyThe Learning Sanctuary Kings Square
New South Wales
Nurture One Tamworth Children’s CentreGreenwood PenrithAlbert Street Children’s CentreBambinos Kindergarten BanksiaGreenwood ConcordLittle Angels World of Learning Vaucluse Kinder Haven
Queensland
Lilliput World of LearningCommunity Kids Goodna Early Education CentreGlenvale World of LearningKool Kids Early Learning Centre — AshmoreKool Kids Early Learning Centre — Clear Island Waters
South Australia
Community Kids Ashford Early Education CentreFelixstow World of LearningMurray Bridge World of LearningZebra Early Learning Centre
The decision means parents using the “underperforming” centres will need to move their children to another nearby facility, while staff will be redeployed “where possible”.
G8, which has 8,800 workers, has been rocked by allegations of historical onsite child abuse by a former staff member at some of its centres in Victoria.
In 2025, Joshua Dale Brown was charged with more than 70 sex offences against eight children aged under two.
The alleged abuse happened at five G8 centres, and three other centres not owned by G8, between April 2022 and January 2023.
Chief executive Pejman Okhovat told shareholders that 2025 had been a challenging year for the group and the entire early childhood education and care sector, given other allegations of on-site abuse affecting other operators.
“These incidents impacted family confidence and trust across Australia,” he said.
“While our focus remains on supporting families and team members during this incredibly difficult time, we continue to do everything we can to give authorities the best chance of achieving justice for the families involved.”
G8 shares have trended down as the scandal linked to its centres broke. (ABC News: Michael Franchi)
In July, G8 rolled out CCTV across its facilities and it continues to work with the federal government to ensure safeguards are in place to preserve child safety, dignity, privacy, and data collection.
“By the end of 2025, 95 per cent of our network was meeting or exceeding the national quality standards or NQS overall, 4 per cent above sector average,” Mr Okhovat said.
Finance Minister Katy Gallagher said she was concerned about the closures and insisted the government was monitoring the situation closely.
“There’s more children in care now, thousands more children in care than when we came to government, thousands more educators, so we are building a system,” she said.
“But it does from time to time have these really upsetting situations occur where childcare centres close for one reason or another.”
G8 shares have trended down over the past year from around $1.28 as the scandal linked to its centres broke.
The stock was about 24 per cent lower at 18.2 cents this morning.
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However, Mr Okhovat also said the childcare sector overall was experiencing unprecedented uncertainty and lower usage rates driven by socio-economic factors.
These factors include higher inflation, interest rates and cost-of-living pressures, falling birth rates, as well as heightened regulatory scrutiny and changes, which can differ in each state and territory.
Mr Okhovat said G8’s focus remained on safety and high-quality care, while noting its occupancy rates were down.
G8 said that as of April 25, the spot occupancy rate across its centres was 56.4 per cent, down 7 per cent on the same period last year.
“While the operating environment means G8 Education does not expect a material recovery in occupancy relative to [the previous corresponding period] this year, we will continue to review and adjust the operating model and cost base,” Mr Okhovat said.
Mr Okhovat has repeatedly apologised since the allegations came to light, telling a Senate inquiry in February that he was horrified.
G8 has described the closure of the centres as a “suspension”, adding that it would consider options including lease surrender, divestment or other alternatives.
G8 made a net loss of $303.3 million in 2025, after booking a large goodwill impairment expense, versus a profit of $67.7 million in the previous year.
The NSW Early Learning Commission said it understood G8 Education intended to suspend operations in a number of locations, but were yet to receive more information.
It encouraged families to visit the Starting Blocks website to identify alternate education and care in their local area.
ABC/AAP
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