Multi Active, which ran before and after school provision as well as holiday clubs across more than 20 sites, announced at the weekend that as of today (6 February) the company will cease trading.
A notice on its website from managing director Kevin Jones states, ‘Unfortunately with the cost of living, rising inflation and interest rates, we have been unable to cover our costs and the company has become insolvent. As a result of this the company will shortly go into liquidation.
‘As a childcare provider the current trading climate is hugely challenging. We set out in 2015 to provide a childcare service that was affordable and reliable, but we realised this is no longer achievable and our business model does not work in 2023.’
It comes after Nursery World reported that out-of-school provision was increasingly at risk, largely due to rising rents.
The statement from the managing director goes on to say, ‘I wanted to personally thank you all for your support in using Multi-Active and thank our staff who make the service we have provided what it is to you, the parents and children.
‘I deeply apologise for the inconvenience this may cause with parents who have booked places for wrap around or half term and the children that will lose out. We would have loved to have gone ahead with this, but we simply cannot continue to trade at a loss as this is unethical and against my duties as a director.’
He confirms that liquidators will issue refunds where they are due.