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Genius Childcare centres face closure as administrators seek buyer amid $88 million debt
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May 08, 2025
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More than 1,100 children and 200 educators face ongoing uncertainty as administrators work to secure a buyer for troubled provider Genius Childcare.
WLP Restructuring, the administrator appointed in March, confirmed that eight of the 18 centres initially under Genius’s operation have already closed. The remaining ten centres continue to operate temporarily with financial support from funder Finexia, but may shut down if a sale is not completed soon.The company’s collapse follows years of financial concerns and allegations of underpayment, missed wages and regulatory breaches. Genius is currently under investigation for possible director misconduct, including trading while insolvent.
Educators and families in limbo
Families and staff across the remaining Genius services are grappling with uncertainty. In the ACT, parent Kahri D’Este told the ABC she is bracing for closure, with no alternative care available for her two children.
“We don’t have any other option. It’s not easy to get care here, everywhere has a waiting list for months,” she said.
Ms D’Este credited the dedication of the centre’s educators as the reason she has stayed enrolled, despite the risk. “There are so many good staff here. They work so hard and have been treated so badly,” she said.
Sale process underway, but challenges remain
The administrators reported receiving over 400 enquiries from interested parties, including former Genius associates. One potential buyer is Steps Early Learning, a provider linked to a former business partner of Genius owner Darren Misquitta. However, as of April, Steps had not secured provider approval through ACECQA.
Administrators are also reviewing a complex web of financial transactions made shortly before the administration began. These include payments to third parties totalling over $500,000 and transfers reportedly linked to Mr Misquitta. Investigations are ongoing and will help determine whether any breaches of director duties occurred.
Legal proceedings and creditor concerns
Genius is involved in multiple legal disputes. Global asset manager BlackRock has taken action over more than $1.2 million in unpaid rent, while the United Workers Union has launched proceedings over missed wages and superannuation. That case is currently paused pending the outcome of the administration process.
Funder Finexia, which previously provided over $24 million in loans to Genius, is also seeking repayment. Finexia has since frozen its childcare investment fund and suspended trading on the ASX. The company recently underwent leadership changes, with key executives resigning in recent months.
Sector stability under pressure
The situation has drawn renewed attention to governance and regulatory oversight in the early childhood education and care (ECEC) sector. Genius’s collapse follows recent national reviews that highlighted the need for greater transparency, financial accountability and provider suitability assessments.
With families and educators caught in the fallout, advocates are calling for stronger safeguards to ensure that financial instability does not impact the delivery of safe, high-quality education and care.
This article is based on original reporting by the ABC, available here.
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