Australia’s largest private childcare operator, G8 Education, has announced plans to close up to 40 centres, representing nearly 10% of its Australian network. The company cited ongoing declines in occupancy, rising operational costs, and sector-wide challenges as reasons for the decision.
Overview of Closures
G8 Education operates 395 centres in Australia under brands including Headstart, Jellybeans, Kool Kids, and Kindy Patch Kids. Approximately 36,000 children are currently enrolled in these centres.
The closures will affect centres in the following states:
- Victoria: 12 centres
- Western Australia: 12 centres
- New South Wales: 7 centres
- Queensland: 4 centres
- South Australia: 4 centres
The company has stated that it will "suspend" operations at underperforming centres while considering options such as lease surrender, divestment, or other alternatives. Staff will be redeployed where possible, and parents will need to find alternative care arrangements.
Financial and Operational Performance
G8 Education reported a net loss of $303.3 million in 2025, compared to a net profit of $67.7 million in the prior year.
As of April 25, 2025, the spot occupancy rate across G8 centres was 56.4%, down 7% from the same period in 2024. Year-to-date occupancy stood at 56.1%.
The company attributed the occupancy slump to affordability pressures, falling birth rates, increased supply of long day care, and reduced confidence following child safety incidents. G8 has stated it expects no material recovery in occupancy this year.
RBC Capital analyst Wei-Weng Chen noted that the occupancy decline could impact earnings before interest and tax (EBIT) by $40 million before mitigation measures.
Investor Vision Super has sold its stake in G8 Education and added the company to its excluded investments list.
Background: Abuse Allegations
In 2025, former staff member Joshua Dale Brown was charged with over 70 sex offences against eight children under two years old. The alleged offences occurred at five G8 Education centres and three other centres between April 2022 and January 2023.
G8 Education has since installed CCTV in its centres and stated it has worked with the government to improve safety measures. G8 CEO Pejman Okhovat said the incidents impacted family confidence and trust across the sector.
Government and Market Response
Finance Minister Katy Gallagher said the government is monitoring the situation closely.
On the day of the announcement, G8 Education shares declined approximately 24% to 18.2 cents, down from around $1.28 a year earlier.