Childcare owner to close centres after abuse scandal
A major early childhood education and care provider at the center of a shocking case of alleged abuse by a former employee is planning to close nearly 40 centers across the country.
The decision means parents using “underperforming” centers will need to move their children to another nearby facility, as staff will also be redeployed “where possible”.
G8 Education, which owns almost 400 early learning centres, made the announcement ahead of its annual general meeting of not-for-profit shareholders in Brisbane on Wednesday.
The listed childcare giant said the industry overall was facing unprecedented uncertainty and low take-up rates driven by socio-economic factors.
These factors include affordability pressures, falling birth rates, increasing supply of long-day care and family confidence affected by “serious security incidents”.
Last year the sector was rocked by allegations of historic child abuse by staff at a range of centres, including some belonging to the G8.
In 2025, former educator Joshua Dale Brown was charged with more than 70 counts of sexual offenses against eight children under the age of two.
The alleged abuse took place at G8 centers between April 2022 and January 2023.
In February, G8 director general Pejman Okhovat told the Senate inquiry into the quality and safety of early childhood education that the group was stunned.
“My team and I are appalled,” Mr Okhovat, who has apologized repeatedly since the allegations emerged, told the hearing.
“Our hearts go out to the children and families involved and we are truly sorry for the pain this has caused.”
Mr. Okhovat said on Wednesday that the G8’s focus remains on safety and providing high-quality care, but occupancy rates have fallen.
As of April 24, the G8 said the occupancy rate at its centers was 56.4 percent, down seven percent from the same period last year.
Year-to-date, prime occupancy is down almost eight percent to 56.1 percent.
“Whilst the operating environment means that G8 Education does not expect a significant improvement in occupancy this year (compared to the previous relevant period), we will continue to review and adjust the operating model and cost base,” Mr Okhovat said.
The G8 described the closure of the centers as a “suspension” and added that it would consider options such as lease cancellation, divestment or other alternatives.
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