Linby parents face new year nightmare after shock nursery closure

Parents of children at Applegarth Day Nursery on Robey Close were left stunned just before Christmas when they received letters saying the nursery would not be re-opening in the new year.

Applegarth has been providing pre-school childcare to the people of Hucknall and Linby for almost 20 years and was rated Good on its latest Ofsted inspection last February, having previously been rated Inadequate.

However, in the letter to parents, seen by your Chad, the nursery blamed ‘significant increases in costs’, a ‘growing amount of parental bad debt’, ‘increases in late payments’, ‘the expiry of the nursery lease with no prospect of a rent reduction’ and 'mounting pressure and intervention from the Local Authority and Ofsted.’

It said: “The latest minimum wage increase would require a further 13 per cent increase to our fees to remain at the current position, which for the avoidance of doubt, is loss-making and has been for the last four years.

"Single, independent nurseries, like ours, simply don’t have the economies of scale to mitigate this multitude of issues and challenges without risking a drop in the level of care for the most precious part of our family ‘your children’.

"This is a compromise that we simply wouldn’t ever make.”

The letter went on to apologise for the late notice of the closure decision and say that it had reached an agreement with two other Nottinghamshire nurseries to offer places to Applegarth children starting after Christmas.

But frustrated parents say the late notcie of the closure has left them with a nightmare start to 2025 as they try to find new childcare places for their youngsters.

One father, who asked not be named, told your Chad: “As working parents, my wife and I now face the unenviable task of taking annual leave to manage the gap while we urgently seek new childcare arrangements for our children.

"The nursery’s letter claims that this decision was unavoidable, citing rising costs and an increase in the national minimum wage.

"However, these are challenges faced by many businesses, yet competent financial planning and management can mitigate their impact.

"Applegarth’s handling of this closure has left both families and staff in a state of uncertainty and distress during what should be a time of celebration.

“The alternative provision offered to parents also reflects a lack of understanding and care for the needs of local families.

"The nurseries suggested are in Calverton and Lambley.

“For many families, including my own, this is simply not a viable option.

"Blaming the increase in the national minimum wage as a reason for closure is equally unjustified.

"These wages reflect the fair compensation childcare workers deserve for their vital roles.

"To claim that this increase is the cause of financial collapse dismisses the real issues and feels like a deflection from poor financial planning and management."

The parent also highlighted that they had studied the nursery’s financial records filed with Companies House, which revealed that the business had paid more than £55,000 in dividends to its two shareholders in the past two years.

The parent said: “Dividends should only be paid when a business is profitable, which contradicts their claims of sustained financial losses

“Families, children, and employees deserved better notice, communication, and planning.”

Donna Harris, the nursery’s founder, said: “Whilst, of course, like any business, we’re open to criticism, I’m sure people appreciate the complexity surrounding placing a business into liquidation and the strict legal processes that have to be followed.

"We have done our absolute best in what have been extremely difficult circumstances both in terms of trying to turn the nursery around (since lockdown), being acquired and/or getting further emergency funding in place to stem the monthly losses.

"If there had been a way of doing things without detriment to our parents, staff and most importantly, the children, we would of course have taken that route.

"Sadly, such a thing wasn’t achieved.

"We have put measures in place to minimise the disruption to all parties as best we can, in providing the signposting of children and staff to other nurseries who we believe will provide the best care for those directly affected by this tragedy.

"Sadly, we can do no more than that and of course, we regret the impact that this will have had on everyone.

“It is quite right that dividends were paid each year, these were, however, from retained profits accrued in previous years from a subsidiary outside of the childcare sector that was owned by Applegarth.

"This is certainly not contradictory to our statement, accounts or UK company law.

“The accounts over the years show reducing revenues leading to significant operational losses, also the significant loans to the company from external parties.

“We would genuinely welcome the introduction of a new nursery to serve the families that we are so fond, although it would take huge resources to build up a nursery that covered its cost base given the size of the building and also the change of the business model post the impact of the pandemic that has driven the sector in recent times.

"Additionally, the changes to National Insurance and confirmation of national mimimum wage increases from the most recent budget is the last nail in the coffin.

"Funding has not kept up with increases to wages which, by any measure, is under represented to the fantastic work childcare practitioners undertake.”

Ms Harris added that five of her staff have been now been employed on permanent contracts by another nursery to facilitate the transition of Applegarth’s children within that nursery.

Your Chad has contacted Nottinghamshire Council for comment.