Childcare giant shuts 40 centres after alleged paedo scandal caused mass exodus

Childcare giant G8 will shut 40 centres nationwide after a mass exodus of families sparked by a worker at one of its Melbourne locations being charged with 70 child sex offences.

The allegations against homosexual accused paedophile Joshua Brown, who is accused of abusing 12 victims at four childcare centres, including G8-run Creative Garden Early Learning Point Cook, led to new safety protocols being brought in and damaged public trust in the embattled sector.

G8, Australia’s largest for-profit childcare operator, said on Wednesday it would suspend 40 of its 395 centres – 12 in Victoria, 12 in Western Australia, seven in NSW, five in Queensland and four in South Australia – including Brown’s former workplace.

The company, which has also had conditions placed on 120 of its centres and enforcement actions issued to 87, said in a statement to shareholders on Wednesday that “serious child safety incidents” had affected families’ confidence, the Herald Sun reported.

G8’s share price sat at just 16c by the close of business, down from $1.27 last year, while spot occupancy was down 7 points to 56.4%, meaning the company was operating at just over half capacity.

CEO Pejman Okhovat said the closures were due to a range of factors, and that the “immediate focus” was to transition families out of closing centres.

“We have a responsibility to operate sustainably and responsibly, in a way that delivers the best possible outcomes for families and supports children to grow, thrive and learn in safe and supportive environments,” he said.

United Workers Union early childhood education and care director Carolyn Smith estimated about 1,000 educators would be affected by the closures, resulting in them being moved to other G8 centres or made redundant.

Georgia Dent, CEO of advocacy group The Parenthood, said parents were increasingly concerned about the safety of their children at childcare centres.

“Falling occupancy at G8 has been driven in part by declining parental confidence following serious safety breaches and scandals,” she said.

Brown’s arrest in July last year was followed by charges being laid against a childcare worker in Sydney a month later, warnings the industry has been infiltrated by thousands of paedophiles, and revelations foreign students are using the childcare system as a pathway to permanent residency.

List of centres shut by G8:

Header image: Left, Joshua Brown at work (supplied). Right, Creative Garden Early Learning Point Cook (LAWD).