Think Childcare confirms receivers appointed at main incubator partner

Think Childcare has confirmed in a statement released to the Australian Stock Exchange that receivers have been appointed to the company’s main incubator partner, Edhod.

 

Think Childcare has operated a dual growth model over the course of the last several years whereby new centres were either developed, opened and operated in house by the Think team or centres were transitioned into the Group from their incubator partners once the build was complete and the centre had reached a predetermined occupancy level.

 

Think’s incubator relationships and model allowed it to work with external partners to secure completed development sites that are customised to Think’s needs and also ensure that practices in centre were consistent with Think’s standards on transition.

 

Receivers to take control of holding company with subsidiaries to continue trading

 

Think have been informed that the receivers will be stepping in to take control of the incubator holding company whilst the subsidiaries in which the development pipeline sit are not subject to the appointment and will continue to operate as normal. 

 

Receivers are usually appointed by financial institutions such as banks when their clients are unable to meet their financial obligations. The receiver will then manage the company on behalf of the bank to protect their interests.

 

In this instance, the expectation of Think is that Edhod will continue to be able to develop and deliver it’s development pipeline going forward as the subsidiaries will remain operating thus enabling Think to meet its expectation of adding 10 new incubator sourced centres to their network in 2019.

 

The company noted that they will continue to monitor the situation closely and will promptly provide an update should circumstances change.

 

For more information on Think Childcare please click here.