The Croydon-based chain Children's Paradise, which catered for 111 children aged three months to five years at the time of its last inspection in May 2005, closed down on 16 December.
The south London company is not thought to have recovered from the loss in income incurred since July, when many parents were forced to find alternative childcare after Ofsted temporarily closed down the settings because of health and safety concerns.
Insolvency practitioners Kallis and Company are now in charge of sorting out the company's assets and getting parents the money they are owed from deposits and advance fees.
Mandip Phlora, the administrator working on the case, confirmed that both staff and parents were still owed money. But he said, 'At this stage it looks unlikely that parents will get it because there are insufficient funds in the company. Employees can get their money from the National Insurance fund, from the Government's redundancy office.'
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