ABC New Zealand is expected to announce a buyer soon for its 127 centres. Photo / Paul Estcourt
Despite the New Zealand arm of ABC Learning Centres surviving the group's collapse in Australia, the failure has forced the liquidation of at least three companies on this side of the Tasman.
The 123 Global group was contracted to develop and on-sell childcare centres to ABC in both countries.
As
a result of the ABC receivership, 123 Global is now in administration.
That has had a flow-on effect to its New Zealand operations.
ABC Acquisitions (NZ), 123 Global and 123 Operations (NZ) have been recently put into liquidation.
The liquidator for the 123 companies, Barry Jordan of Deloitte, said 123 Global was estimated to owe A$8.6 million.
Much of that was owed to other companies in the group, but there were New Zealand creditors including Christchurch developer Ireland Developments.
Jordan said working out 123's position was not easy. "The records of the companies we're looking at are poor, to be polite."
ABC New Zealand general manager Craig Presland said the company was negotiating with the liquidators about completing the purchases of four childcare centres from the 123 group.
The centres are in Dannemora and Glenfield in Auckland, and in Ashburton and Rangiora in the South Island.
"We've paid significant development fees and deposits already," he said.
Apart from that the relationship between 123 and ABC had ended.
Meanwhile, the company was on the verge of announcing a buyer for ABC's 127 New Zealand centres, Presland said.
He said the preference had always been to sell the centres plus the New Zealand College of Early Childhood Education in Christchurch to a single buyer, and he hoped to make an announcement next week.
