G8 Education closes 40 childcare centres amid child abuse scandal and financial strain
Consensus Summary
G8 Education, Australia’s largest childcare operator, announced the closure of 40 centres (10% of its network) on April 29, 2026, following a child abuse scandal involving former staff member Joshua Dale Brown, who was charged in 2025 with over 70 offences against eight children under two at five G8 centres and three others between April 2022 and January 2023. The closures, described as a 'suspension,' will primarily affect Victoria and Western Australia, with 12 centres shutting in each state, alongside closures in NSW, Queensland, and South Australia. The decision impacts 36,000 enrolled children and 8,800 staff, with parents urged to relocate their children to nearby facilities. G8’s CEO, Pejman Okhovat, emphasized safety as a priority, noting the company’s 95% compliance with national quality standards by late 2025 and the rollout of CCTV across facilities. However, the company reported a net loss of $303.3 million in 2025, down from a $67.7 million profit in 2024, and shares have fallen 24% to 18.2 cents. Financial strain, regulatory scrutiny, and declining occupancy rates (56.4% as of April 25, down 7% year-over-year) contribute to the closures, which G8 frames as part of a broader review of its operating model amid socio-economic pressures like inflation and falling birth rates.
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Key details reported by multiple sources:
- G8 Education will close 40 childcare centres (about 10% of its 395 centres) across Australia
- Victoria and Western Australia will each lose 12 centres, with closures also in NSW, Queensland, and South Australia
- Joshua Dale Brown was charged in 2025 with over 70 child sex offences against eight children under two, alleged to have occurred at five G8 centres and three non-G8 centres between April 2022 and January 2023
- G8 employs 8,800 staff and has 36,000 children enrolled across its centres, including brands like Headstart, Jellybeans, Kool Kids, and Kindy Patch Kids
- G8 announced the closures on April 29, 2026, ahead of its annual general meeting in Brisbane
- G8’s spot occupancy rate was 56.4% as of April 25, 2026, down 7% from the same period last year
- G8 made a net loss of $303.3 million in 2025, compared to a profit of $67.7 million in 2024, due to goodwill impairment
- G8 rolled out CCTV across its facilities in July 2025 and claims 95% of its network met or exceeded national quality standards by the end of 2025
- G8 shares have trended down from around $1.28 to 18.2 cents (24% lower) as of April 29, 2026
- G8 described the closures as a 'suspension' and will consider lease surrender, divestment, or other alternatives
Points of Difference
Details reported by only one source:
- Finance Minister Katy Gallagher expressed concern about the closures and stated the government is monitoring the situation, noting an increase in children in care and educators since her government took office.
- G8’s CEO Pejman Okhovat apologized during a Senate inquiry in February 2026, calling the allegations 'horrified' and stating the company’s focus remains on safety and high-quality care.
- The NSW Early Learning Commission acknowledged G8’s intention to suspend operations but stated they had not yet received more information and encouraged families to use the Starting Blocks website for alternatives.
- CEO Pejman Okhovat stated that 'serious incidents reported nationally' have led to heightened regulatory scrutiny and an enhanced focus on safety across the sector, impacting family confidence and trust.
Contradictions
Conflicting information between sources:
- ABC reports G8’s occupancy rate was 56.4% as of April 25, 2026, while NEWSCOMAU does not provide a specific occupancy rate figure.
- ABC mentions G8’s 2025 net loss of $303.3 million due to goodwill impairment, but NEWSCOMAU does not reference financial details beyond the closures.
Source Articles
Major childcare operator reveals list of 40 centres to close
Victoria and Western Australia will be affected the most, with 12 centres shutting in each state. NSW, Queensland and South Australia will also have closures.
‘Trust’: Shock closure of 40 childcare centres
A childcare group that was rocked last year when one of its staff was charged with child abuse offences, has revealed 40 centres will close across Australia.
Childcare group G8 to close 10pc of centres after child abuse scandal
About 36,000 children are enrolled under the brand's 395 childcare and early learning centres, which include centres such as Headstart, Jellybeans, Kool Kids and Kindy Patch Kids.