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One Genius operating entity has been placed in administration, other continues trading
Jason Roberts
Mar 18, 2025
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One of Genius Childcare’s two operating entities - Vertical 4 Pty Ltd - has filed for voluntary administration in a move that will see the company’s centres fall under the control of administrators that have been appointed to stabilise the businesses before they seek to find new owners.
Vertical 4 Pty Ltd owned and operated thirteen Genius centres, of which two are currently unopened, with locations across Queensland, Western Australia, New South Wales and Victoria.The appointment of administrators is an important step in the winding up process of a business and is usually triggered by a creditor (someone who the business owes money to) calling in its security over the assets and forcing the company’s owners to give up control so that the creditor can try and claw back money owed to it by the sale of the business and its assets to third parties.
Administrators are a crucial part of this process as they essentially take over the operations of the business, and then manage them on behalf of the creditor until they are able to sell them to new owners.
The proceeds raised from the sale, less the administrators costs, will then be passed back to the creditor/s.
WLP restructuring appointed to stabilise operations and find new owners
WLP Restructuring have been appointed as the administrators of Vertical 4 Pty Ltd and have assumed full control of the company.
The administrators have moved quickly to secure additional credit lines from the company’s bank, which is also the primary creditor, which will be used to allow the centres that are operating to continue to trade and importantly, will allow team members within the services to receive their pay.
“We understand the urgency and concerns parents and staff have about the challenges facing some of the company’s centres,” WLP Restructuring said in a statement.
“We have already engaged in constructive discussions with the company’s lender to extend its debt facility, which if agreed, will provide funding to keep centres open and reopen care services while a sales process is undertaken.”
“We are committed to exploring all avenues to facilitate continuity of care for families, preserve employment opportunities and ensure the company’s ongoing viability.”
Second Genius business, Abacus 49, continues to operate
Although one of the Genius operating entities has now been placed into administration, the second, Abacus 49 Pty Ltd, continues to operate.
Abacus 49 Pty Ltd is currently the approved provider for nine Genius services across four jurisdictions, but notably the number of businesses it currently operates is down from sixteen as at January 1 2025, signalling that a number of centres under Abacus ownership have been either been closed or sold since the beginning of the year.
Over the course of the last nine months Genius has faced multiple allegations of unpaid wages and invoices from employees, suppliers and landlords as well as interventions from Regulatory Authorities and Legislative Bodies.
In recent weeks employee groups have formed to advocate, alongside unions, for support in their endeavour to recoup lost wages and ensure Genius’s owners are held accountable for their actions.
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