The sudden closure of two early childhood education centers in Invercargill and Queenstown surprised parents, forcing them to rush to find solutions for their children in less than 24 hours.
The Rainbow Corner Early Learning Center in Queenstown closed its doors on March 8 and the branch in Invercargill on Tuesday.
The owners allegedly said the reason was related to the rent of the building. On Tuesday, however, PricewaterhouseCooper (PwC) was appointed as receiver of The Rainbow Group of Companies Ltd and certain affiliates.
Early childhood education licenses will be suspended when trustees are appointed.
The trustees have therefore had to cease childcare activities with immediate effect.
“We understand that these closures will cause significant disruption to a number of families over the coming days, but unfortunately there was no other option under the circumstances,” said receiver Stephen White.
Ministry of Education hautū (leader) for Te Tai Runga (South) Nancy Bell said Tuesday was notified that the Rainbow Corner group of companies was in receivership and the companies would close.
“The Rainbow Corner services in Invercargill and Queenstown were closed prior to this decision as Rainbow Corner had lost access to the buildings.”
A mother of a toddler from Queenstown, who asked not to be named, said she was surprised when she went to pick up her son at the center on Tuesday.
“It was around 4.30pm on Tuesday and then the teachers said ‘make sure you pack all your stuff because we close from tomorrow and they will send an email’. I asked what was going on but they couldn’t tell us tell me something else.”
The email received that night was simple — just a few lines to apologize and say the lease would be changed, she said.
“It’s very disappointing. I’m lucky because I work part-time, but a lot of people in this town have no family and no support system whatsoever and they absolutely depend on it.” [the centre].”
A social media group has been set up to support parents so they can help each other, with some teachers and parents providing private care, she said.
At the Invercargill site, the owner of the building, PMG Direct Childcare Fund Trustees Ltd, posted two notices.
One was for the owners of Rainbow Corner where it was stated that the lease had been terminated for non-compliance with Property Law Act notices.
Another for parents, carers and children from Rainbow Corner Invercargill said the lease was terminated with immediate effect due to operating conditions beyond the control of the building owner.
PMG Funds CEO Scott McKenzie said yesterday that recent media coverage of Rainbow Corner, which rented two properties from PMG Funds, had raised a “number of red flags”.
He said that in the long-term interest of all parties, the best option was to terminate all leases with immediate effect.
He worked with stakeholders to create short- and long-term solutions for them, Mr. McKenzie said.
– The Rainbow play center in South Dunedin is not affected by the liquidation.