G8 Education Faces Major Challenges as Childcare Centres Close
G8 Education, one of Australia’s largest childcare centre operators, has announced the closure of 10 per cent of its sites, causing significant concern among parents and families. This decision comes in the wake of a child abuse scandal that has shaken public confidence in the sector. The closures have left thousands of parents scrambling to find alternative childcare options for their children.
The company, which operates under well-known brand names such as Headstart, Creative Garden, Jellybeans, Kool Kids, World of Learning, and Kindy Patch Kids, serves approximately 36,000 children each week across its 395 centres nationwide. The 40 centres slated for closure will require parents to relocate their children to nearby facilities, with staff being redeployed where possible.
Parenting advocate Georgie Dent described the closures as deeply concerning. She highlighted the immediate and stressful impact on families, noting that for some, there may be no realistic option nearby. “What this exposes is a system under real strain,” she said.
Federal Education Minister Jason Clare stated that the closures were a commercial decision. He emphasized the importance of the company working with affected families to facilitate alternative arrangements for the children.
A Scandal That Shook the Sector
The closures come after the arrest of a former G8 worker, Joshua Dale Brown, who was charged with more than 70 sex offences against eight children aged under two at centres in Victoria. The alleged abuse occurred at a G8 centre and three other centres not owned by G8 between April 2022 and January 2023.
United Workers Union director of early childhood education Carolyn Smith pointed out that G8 has a significant number of centres located outside major cities. She urged the federal government to take notice of closures in areas that are already childcare deserts, ensuring families are not left without options.
Financial Struggles and Shareholder Concerns
G8, which employs 8,800 child educators, faced intense scrutiny at its annual general meeting of shareholders in Brisbane. One shareholder criticized the group, calling it a “dunce” and accusing it of causing losses for investors due to poor share market performance.
On Wednesday, G8’s stock collapsed by almost 65 per cent to a near 16-and-a-half-year low of 15.5 cents before recovering slightly to 16.7 cents in afternoon trading. A year ago, the stock was trading around $1.27.
Chief executive Pejman Okhovat acknowledged that 2025 was a challenging year for the group and the broader childcare sector, citing allegations of abuse linked to other operators. These incidents, he said, impacted family confidence and trust across Australia.
Regulatory Scrutiny and Safety Measures
G8’s year-to-date occupancy rate across its centres was 56.1 per cent, a drop of 7.9 per cent compared to the previous period. The sector is also under heightened regulatory scrutiny.
In July, G8 rolled out CCTV across its facilities and continues to work with the federal government to ensure safeguards are in place. Prime Minister Anthony Albanese emphasized that every parent should have the confidence that when their child is put into early learning, they are safe.
Ongoing Challenges and Financial Losses
At the end of 2025, 95 per cent of G8’s centres met or exceeded national quality standards, four per cent above the sector average. However, Mr Okhovat has repeatedly apologized since the historical abuse allegations came to light, telling a Senate committee he was horrified.
G8 described the centre closures as a suspension and said it would work on lease surrender, divestment, or other alternatives in the coming months. The company made a net loss of $303.3 million in 2025, compared to a profit of $67.7 million in the prior year.
The board on Wednesday dropped a resolution to grant performance rights—equity incentives—to Mr Okhovat while thanking him for steering G8 through a “very difficult period.”
