A major early childhood education and care provider at the centre of a shocking case of alleged abuse committed by a former worker plans to shutter about 40 centres across the nation.
The decision means parents using the “underperforming” centres will need to move their children to another nearby facility as staff are also redeployed “where possible”.
G8 Education, which has almost 400 early learning centres, made the announcement on Wednesday ahead of the for-profit’s annual general meeting of shareholders in Brisbane.
The listed childcare giant said the sector overall was experiencing unprecedented uncertainty and lower usage rates driven by socio-economic factors.
These factors include affordability pressures, falling birth rates, increased long-day care supply and family confidence being impacted by “serious safety incidents”.
Over the past year, the sector has been rocked by allegations of historical onsite child abuse by staff members at a number of centres, including some owned by G8.
In 2025, former educator Joshua Dale Brown was charged with more than 70 sex offences against eight children aged under two.
The alleged abuse happened at G8 centres between April 2022 and January 2023.
In February, G8 chief executive Pejman Okhovat told a Senate inquiry into the quality and safety of early childhood education that the group was reeling.
“My team and I are horrified,” Mr Okhovat, who has repeatedly apologised since the allegations were revealed, told the hearing.
“Our hearts go out to the children and families involved and we are truly sorry for the pain this has caused.”
Mr Okhovat said on Wednesday that G8’s focus remains on safety and providing high-quality care, while noting its occupancy rates are down.
As of April 24, G8 said the spot occupancy rate across its centres was 56.4 per cent, down seven per cent on the same period last year.
Year to date, its main occupancy rate was down almost eight per cent to 56.1 per cent.
“While the operating environment means G8 Education does not expect a material recovery in occupancy relative to (the previous corresponding period) this year, we will continue to review and adjust the operating model and cost base,” Mr Okhovat said.
G8 has described the closure of the centres as a “suspension”, adding that it will consider options including lease surrender, divestment or other alternatives.