ABC centres to stay open until sold

Childcare company ABC Learning Centres will be kept running till a suitable buyer is found, its Australian parent firm's receiver says.

Chris Cowan of McGrathNicol said talks with a prospective buyer had fallen through but the business was trading profitably and starting a "significant" upgrade of its centres.

"We are looking to improve the business performance and to obviously ensure that there's a smooth transition to a new buyer," he said.

"We are 30 per cent up on last year's figures so it's an extremely viable business."

About $5.3m had been invested in the company's 127 centres during 2009 and it was on track to invest another $4m during 2010.

Mr Cowan said no profits were going towards the failed ABC business in Australia, though it still remained the shareholder.

It is understood a local player was behind the unsuccessful bid for the New Zealand centres, although Mr Cowan said he could not confirm that.

He said several parties had expressed an interest since, but the receivers were not interested in a rushed sale process.

ABC Learning Centres NZ cares for 8000 children and also runs the New Zealand College of Early Childhood Education.

- © Fairfax NZ News