In a statement last week, Leapfrog Day Nurseries, which owns 98 settings, said it was proposing to close Cheshire Oaks, Kettering Millbrook, Birmingham Bristol Road, Swindon Abbey Meads and Gloucester nurseries on 30 September.
The decision follows a review by the company to determine which locations and type of nursery 'best meet the needs of parents and children, while achieving acceptable investment returns'.
Simon Cashmore, managing director of Leapfrog Day Nurseries, said, 'The five in question have come under pressure geographically from Government programmes. This has driven out the volume and made it difficult for us to remain sustainable.
'We've looked at the children's centre programme up to 2008 and where the Government investment is coming in. We've forecast that it will be harder for us to be profitable and deliver a good- value service in these areas.'
He said that the company had also looked at locations where there are two or three nurseries in close proximity in an attempt to 'minimise' the impact for staff, parents and children. 'The decision to close these nurseries has not been made lightly and the effect on everyone likely to be affected, including, parents, children and our staff, has been carefully considered at every stage.'
Staff were informed of the proposals on 3 August and parents received letters the following day. The company says it cannot comment on how many redundancies will be made because it is in consultation with workers.
Nord Anglia Education, the parent company, owns three of the five nursery buildings on leasehold and two on freehold. Mr Cashmore said, 'If the right organisation came along and offered to relieve the leasehold or buy the freehold, we would be open to offers.'
By Nicole Weinstein Complaints against childcare providers that are not upheld following an Ofsted investigation will no longer be listed in the provider's next inspection report, Ofsted has announced.
The change, which comes into force on 1 September, will mean that providers will no longer be at risk of losing business from parents deciding not to use their settng on the basis of a complaint for which no action was required.
Currently, details of complaints are noted in the provider's next inspection report, even if checks find no evidence for them.
An Ofsted spokesperson said, 'In childcare inspection reports we will now include only those complaints which have required us or the provider to take action in order for the setting to meet the Government-set National Standards for childcare. We will no longer provide details of complaints where neither ourselves nor the provider needed to take action. We hope this will help parents make informed decisions as well as giving them a balanced picture of a nursery or childminder.'
But Sheila Griffith, an accredited childminder from Somerset, said that this is 'unfair' on those who have just received inspection reports detailing unfounded complaints. She said, 'This means I will have to wait another three years to change the unfounded, un-upheld complaint received in my otherwise "outstanding" inspection report. I think Ofsted should take it off now. This is my only income and I'm worried that it will affect my business.'
Ofsted will also change the way it handles anonymous complaints. A spokesperson said, 'If they are made by a member of staff in the setting, or they suggest that a child is at risk, we will investigate. Otherwise we will refer anonymous complaints relating to the National Standards to providers so they can investigate and report back to us.'
Ofsted consulted providers about the changes at its annual conference for national daycare provider chains in May.