Childcare Chain Collapses into Administration, Highlighting Private Credit Risks

A childcare chain with centres in Queensland, Victoria, and the ACT has entered administration, highlighting the risks associated with private credit in the sector.

Shared Beginnings, owned by Finexia Financial Group, operates seven centres across the country, which will continue to operate under the control of administrators.

Financial struggles and administration

Finexia managing director Neil Sheather said the decision to place Shared Beginnings into administration was not taken lightly, but was necessary.

“Finexia has committed to honour staff entitlements and continues to financially support the business as it continues to provide services to families,” he said.

“Ultimately, the administrators are in control of Shared Beginnings.”

In a letter to staff, Mr Sheather said the administration would affect all seven of its centres, including Sinnamon Park and Kenmore in Queensland, Reservoir, Mont Albert and Beaumaris in Victoria, and Bonython and Conder in the ACT.

All Shared Beginnings centres remain open under the control of administrators Bill Karageozis and Nick Keramos of DVT McLeods, who have been appointed to find suitable buyers.

Impact on the childcare sector

The collapse of Shared Beginnings highlights the risks of the private credit sector, with Finexia taking on ownership of the centres after the previous owner, Genius Education, defaulted on substantial loans owed to Finexia.

The Australian Securities and Investments Commission has recently said it was closely scrutinising private lending, which has typically been a much more lightly regulated sector than the banking industry, and was concerned “the first significant cracks” were appearing.

Former national children’s commissioner Anne Hollonds AO said the childcare sector was undergoing a significant adjustment, driven by increased regulatory costs and a number of prominent crises.

“I think what we’re seeing is a lot of private providers divesting centres or pulling out altogether,” she said.

“We really need to focus on the safety and well-being of children as the priority,” she said, adding that she had no problem with for-profit providers as long as their operation was up to scratch.

For-profit providers drive instability

A recent report finds for-profit centres drive substantial instability in the long day care sector.

The Mitchell Institute found substantial instability or “churn” in the long daycare sector was driven by for-profit centres.

“Since 2013, about one-third [32 per cent] of long day care services open in 2025 had changed approved provider,” the report said.

“The rate is higher in for-profit centres where 40 per cent have changed provider, compared to 11 per cent of all other centres.”

Finexia’s financial struggles

Finexia said it had provided significant financial and operational support to Shared Beginnings, including rebranding, marketing, staffing support and substantial funding to cover working capital shortfalls.

The stock exchange suspended Finexia’s securities on March 2 after it failed to file multiple periodic reports, including its half-yearly report which was due at the end of February.

The company had reported a $5.2 million net loss for the 2025 financial year, which it described as “one of the most challenging in Finexia’s history”.