Early years

Third of UK childcare practices could close within a year

Childcare platform Childcare.co.uk says a third of childcare providers (33%) believe they may have to close their practices permanently in the next six to 12 months, as they deal with reduced capacity, rising operating costs and government support ineligibility. A Welsh language nursery in Cardiff has been acquired in a deal backed with a six-figure lending facility from NatWest, BusinessLive has reported.

Si-lwli Nursery has been acquired by husband and wife team Graham and Charlotte Forrrester after they secured a £250,000 loan from NatWest to part-finance the acquisition.

Si-lwli, was established in 2003 and has a capacity for 51 children.

The Forresters have become directors of the nursery and have retained the team of 21 full and parttime staff. WeWork, the shared office space provider, has recently divested two of its education businesses.

The co-working real estate startup, which was once valued at $47 billion before its fall from grace, has sold coding bootcamp Flatiron School to Carrick Capital Partners, a technology-focused private equity firm.

WeWork also reportedly sold the assets of WeGrow, its private kindergarten, to WeWork

A survey of more than 1,600 providers found that nearly fourfifths (78%) of providers believe the government hasn’t given enough financial support to the early years sector, while four-fifths (81%) stated they were currently operating at a loss.

Graham Forrester said: “When the opportunity arose to purchase Si-lwli, it was an easy decision for us, given our business and childcare experience, to take over ownership. Not only is Cardiff a growing city with increasing demand for childcare, but there are a limited number of Welsh medium nurseries like ours.

“With the Welsh Government’s vision for a million Welsh speakers by 2050, immersing children in the language at a young age is crucial. co-founder Rebekah Neumann, who had led the unit as its chief executive.

The terms of both transactions were undisclosed, but WeWork paid around $28 million for Flatiron in 2017 and reports suggest that WeGrow traded for less than $1 million.

Launched in 2018, WeGrow was touted as a “conscious entrepreneurial school” that combined yoga, mindfulness

Richard Conway, founder of Childcare.co.uk, said: “As the lockdown becomes increasingly less restrictive, many in the UK can see the light at the end of the tunnel. However, for many childcare providers it’s difficult to predict when things might start and other wellness enrichment programmes into its curriculum.

Tuition reportedly reached upwards of $42,000 and around 100 students were enrolled last October, when the company announced it was to close down after the 2019-20 academic year.

According to reports, Neumann acquired the rights to the curriculum of the pre-school and plans to relaunch it as Students of Life For Life, or SOLFL, pronounced ‘soulful’. looking up for them, especially when they’re faced with challenge after challenge.

“As a platform which is heavily involved in both the parent and provider community, we know the struggles both have had to endure throughout lockdown, and we don’t think many can deny that the early years sector needs additional support and clarity. It would be devastating to the economy if a third of providers were to close within the year, so I think it’s time for the government to step up and support the sector that facilitates working families and childcare

UK: Welsh language nursery in Cardiff acquired

Cardiff, Wales

US: WeWork offloads two education businesses

development.”

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