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THE future of more than 2000 ABC Learning childcare centres is in doubt today after under-siege boss Eddy Groves admitted he is selling off parts of the business.

ABC Learning`s 200 NSW childcare centres are operating "as normal" at this stage, but unions representing 16,000 centre staff have demanded answers as uncertainty continues to cloud the childcare giant.

Federal Families Minister Jenny Macklin also put pressure on ABC Learning to reveal the true extent of its financial woes, saying parents needed childcare places protected.

ABC Learning shares plunged as much as 70 per cent on Tuesday, carving the value of the company by $760 million. As a result, ABC said yesterday that parts of the company were now up for sale.

It has refused to say any more until the future is clear for more than 1000 ABC Learning childcare centres throughout Australia and New Zealand, and a further 1000 in the US.

Shares in the publicly-owned company are now in a trading halt, as the company prepares to make another statement, which could be as late as next week.

The Liquor, Hospitality and Miscellaneous Union, representing childcare workers, demanded answers.

"I don`t think this level of uncertainty helps anybody," Louise Tarrant, national secretary of LHMU told The Daily Telegraph.

"It certainly doesn`t help the parents, workers or the investors. The sooner we can settle this down and get to the heart of the issues."

Many independent centre owners are highly critical of ABC methods.

Patricia Wilschefski built her own long day care centre and preschool at Matraville in Sydney`s south nine years ago. She knows the name of every one of Kindaburra`s 72 children.

"That`s something Eddy Groves wouldn`t know," Ms Wilschefski said.

She describes Kindaburra Children`s Centre as her "baby".

She doesn`t use frozen and tinned food in lunches and has employed an on-site cook to prepare from scratch all meals using fresh produce.

The biggest difference between her centre and ABC`s is the personal attention, she said.

"We bond as a team and we bond as a community whereas I don`t think there would be that loyalty in a big organisation," she said.

The LHMU said the basics of the business operations in Australia were sound.

"That is, good-sized centres with high levels of occupancy, good management systems, quality staff and ongoing demand for those services," Ms Tarrant said.

The union will meet with senior ABC executives in the next day or two "to get a much clearer picture" about the company`s future.

Ms Macklin yesterday said the Federal Government was aware of the ABC situation and was talking about it "internally".

But she said those childcare places must be maintained.

"We have to make sure that those childcare places are available -- families rely on them," she said.

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Today`s Top Picks

Inmates in teenage jail `orgy`

JUVENILE delinquents allegedly had a "sex romp" at a detention centre after staff left security doors unlocked.

Font size: +-

Send this article:PrintEmail

Search for more stories on this topic on Newstext, our news archive service. Click here

Also in News

Video

Skateboarders do 360Watch this Video NOW!
Skateboarders do 360

INTERNATIONAL skaters talk tricks, injuries and why they love to skate.

Latest videos

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Advertisement

Love & Relationships - Find a date near you on Match.com - # 1 Online Dating site Worldwide.
 
What`s On in New Zealand. To find out What`s On this autumn visit www.newzealand.com
 
Virgin Mobile Cheap calls & text across Australia.
 
TIC TAC Taste of Music WIN the ultimate music experience 12 double passes to 12 concerts.
 
Blue Holidays Fiji Sale. Fiji holiday packages including airfares from $738pp. Conditions apply.
 
Get a higher return Earn a high 7.88% p.a.^ on a 3 month Term Deposit with HSBCPremier.
 
Want to be instantly better off? Find the best Health Insurance online now.
 
Win a trip to Vietnam and get younger looking skin thanks to Blackmores Radiance(r).
 
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