G8 Education's Asia push stumbles G8 Education's move into child care in Asia has struck problems, after a Singapore company from which it planned to buy centres fell into receivership after taking funds from the Gold Coast-based operator.
G8 had receivers KordaMenthaNeo appointed to the holding company of Cherie Hearts in Singapore on Tuesday. That appointment was not mentioned in an update G8 made on Thursday.
KordaMenthaNeo yesterday told The Courier-Mail the seized company was "not directly involved" in Cherie Hearts centres.
"It is business as usual at the centres," it said.
G8, which plans to run almost 200 centres, unveiled in October a move on Singapore in a $19 million deal to acquire Cherie Hearts' business, including 48 franchises and 18 "owned" centres.
Thursday's announcement said G8 would acquire 52 franchises, and "rights to operate" 18 centres with a "total outlay"of $16 million.
Attempts to obtain comment from G8 were unsuccessful.
Singapore media overnight quoted G8 managing director Chris Scott as saying the dispute was over a loan and would go to court.
G8's last accounts show profits in 2010 hit $4.8 million and are forecast to reach $14.9 million this year.
But the accounts, in a section on testing the value of childcare centres, also state long-day care occupancy for centres was forecast at 78 per cent for 2011, below last year's figure of 79 per cent.
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