Childcare operator G8 Education has announced the closure of 40 of its centres across Australia, affecting about 10 per cent of its network. The decision comes after the company was rocked by allegations of historical child abuse by a former staff member at some of its Victorian centres.
The closures will impact approximately 36,000 children enrolled in G8's 395 centres, which operate under brands including Headstart, Jellybeans, Kool Kids and Kindy Patch Kids. Victoria and Western Australia are the hardest hit, with 12 centres closing in each state, while New South Wales, Queensland and South Australia will also see closures.
G8 chief executive Pejman Okhovat told shareholders that 2025 had been a challenging year for the group and the entire early childhood education sector. He said the company's focus remained on supporting families and team members while working with authorities to achieve justice for the families involved.
Finance Minister Katy Gallagher expressed concern over the closures and said the government was monitoring the situation closely. She noted that while the childcare system was expanding, such closures were upsetting for families.
G8 reported a net loss of $303.3 million in 2025 and has seen its share price fall significantly since the abuse allegations emerged. The company has described the closures as a suspension and will consider options including lease surrender or divestment for the affected centres.
