The South Island business of failed childcare firm Easy Mind stopped providing services from 5pm on Sunday, said liquidator Rodewald Hart Brown.
The closure will result in more than 60 job losses and leave up to 200 Otago and Southland families searching for alternative childcare arrangements, the Otago Daily Times
reported.
Easy Mind assets in Hawkes Bay, Palmerston North, Feilding and Gisborne were sold to Scallywags Sprouts In-Home Childcare at the weekend.
Scallywags managing director Martin Ennor said his company would offer jobs to all staff in the businesses his company bought.
The liquidators said sales of businesses in the Waikato and Coromandel were expected to be completed yesterday.
Easy Mind, which was put into liquidation this month, was founded in Hamilton in 2002 by early-childhood teacher Clare Grace and her husband, Fred.
Its website says it has 15 centres in Waikato, Whitianga, Gisborne, Hawkes Bay, Manawatu, Wairarapa, Otago and Southland.
Commenting on the closure of the South Island business, the liquidators said they were unable to secure short-term cash to pay staff and educators and the Ministry of Education did not consider it appropriate to advance any further funding.
The liquidators said the ministry rejected a proposal that would have enabled the Easy Mind Childcare service to continue operating for three weeks at no net cost to it.
The liquidator said the decision seemed to be based on concerns about the company's previous financial dealings with the ministry.
During the seven days of the liquidation, there was a cash shortfall of $75,000.
The liquidators had financed part of this but it was not possible to complete a sale of the South Island business within a short timeframe.
They acknowledged the support of ministry staff in the sale.
- NZPA
