interested buyers of abc centres

Group eyes unviable ABC Learning centres
December 14, 2008 - 3:16PM

A group interested in taking over 241 ABC Learning childcare centres deemed by the receiver to be unviable, says it is interested in all of the centres said to be unprofitable.

The Community Sector Banking Service - a joint venture between the Bendigo and Adelaide Bank Ltd and a consortium of charities and community service agencies - said on Sunday that it had had initial talks with the federal government about taking over the centres.

"We have brought together a group of organisations that have an enormous track record in the provision of childcare throughout Australia," Community Sector Banking executive director Peter Quarmby told Sky News' Sunday Business program.

"We've also brought into that some other non-profit organisations that have a great interest in seeing that these childcare centres are maintained in their communities."

Mr Quarmby said the consortium would like to have the opportunity to look at running all of the ABC Leaning centres considered unviable.

"We believe that we have the expertise and the financial models to make this package work," he said.

"We would always try to take all these businesses to profitability, but because profit isn't the motive in the community sector or non-profit sector, sustainability is probably the thing that we are striving for."

Mr Quarmby said the profits of one centre could be used to support a centre considered unviable at this stage.

"We've been looking at alternative models, so that maybe we may well change the dynamic at some centres," he said.

"Maybe incorporating the likes of a kindergarten if there is a centre with an undersupply of children.

"Maybe looking at utilisation of disability services for young children and having early intervention, which brings another income stream into the centre but also brings new services into that community."

A takeover of the unviable centres may require some government support in the early days, but the consortium's objective would be to limit that as much as possible.

"We are not asking for the government to come in, buy the centres, and have the not-for-profit sector simply run them," Mr Quarmby said.

"We actually think that we can take a more proactive stance than that."

ABC Learning Centres Ltd, Australia's largest childcare centre operator, went into administration and receivership in November, owing more than $1 billion.

ABC Learning operates just over 1,000 centres, of which 241 have been deemed unprofitable.

The federal government has committed $22 million to keep all centres open until December 31 and a further $34 million to keep the unprofitable centres open until March 31.

But 55 centres will shut as early as January 1 and an estimated 100 of the 500 childcare workers affected will not be reassigned.

Source : http://news.smh.com.au/business/group-eyes-unviable-abc-learning-centres-20081214-6y66.html