Staff, parents and children have been left in shock after a chain of Aussie childcare centres collapsed and its director, according to the union, is nowhere to be found.
Genius Childcare centres in Victoria, NSW, WA, Queensland and the ACT have been taken over by administrators after employees had complained of late payments and unpaid superannuation.
Vertical 4, the company forced into administration, was previously called Genius Learning and lists Darren Misquitta as company director and secretary.
Millionaire Mr Misquitta’s childcare business allegedly failed to pay staff wages and up to $7million in superannuation, the Courier-Mail reported.
Several of the centres suddenly closed in recent months, leaving hundreds of families desperately scrambling to find an alternative place for their children.
The United Workers Union (UWU) is taking action against Vertical 4 in the Federal Circuit Court on behalf of 57 of its ex-staff who are members. The union is seeking unpaid super and penalties for the late payment of wages.
UWU President Jo Schofield alleged Mr Misquitta was ‘missing in action’ and had not been seen for about six months.
‘Genius Early Learning’s director Darren Misquitta seems to have disappeared off the face of the earth,’ Ms Schofield claimed.
‘The rumour mill is in overdrive, reporting him in Hong Kong, Japan, the Gold Coast and other locations, but the truth is no one seems to know for sure.’
The union served Mr Misquitta court papers through his lawyers in Melbourne last week.
Vertical 4 is responsible for 13 Genius childcare centres spread throughout four states along with a Canberra centre.
They locations are: Hamilton Hill, Lakelands and Mandurah in WA, Castle Hill and Pyrmont in NSW and Newcomb in Victoria. It also has two unopened centres in Eumemmerring and Cranbourne West, which are both in Victoria.
There are also another five other centres which the administrators are in the process of selling to a third party in Mount Albert, Beaumaris and Reservoir in Victoria, Kenmore in Queensland and Gowrie in the ACT.
Nicholas Charlwood, Glenn Livingstone and Alan Walker of WLP Restructuring have been appointed as the administrators of Vertical 4.
‘Administrators were appointed by the company’s secured creditor and have now taken control of the company and its assets,’ WLP said in a statement.
‘While the administrators examine the company’s financial position, they are focused on stabilising operations and limiting any further disruption of services to families across the country.’
Mr Charlwood said the administrators immediately moved to extend the company’s debt facility.
‘This is intended to allow the centres to resume trading, reinstate staff and pay outstanding wages while the administrators urgently seek either a purchaser for the centres or a party to recapitalise the company,’ he said.
‘We understand the urgency and concerns parents and staff have about the challenges facing some of the company’s centres.
‘We have already engaged in constructive discussions with the company’s lender to extend its debt facility, which if agreed, will provide funding to keep centres open and reopen care services while a sales process is undertaken.’
Mr Charlwood said there would be no change to the operations of individual centres unaffected by recent closures.
‘We are committed to exploring all avenues to facilitate continuity of care for families, preserve employment opportunities and ensure the company’s ongoing viability,’ he said.
A message from management reported by the Daily Telegraph said: ‘We want to take a moment to acknowledge the uncertainty and concern that news of an administrator being appointed to Genius Learning Pty Ltd may bring.
‘We understand that this is a challenging time and we are committed to keeping you informed and supported throughout this process.’
Daily Mail has contacted Genius Childcare seeking comment from it and Mr Misquitta.