End of Summer Shutdown: Proposed Closure of 44 Daycare Centers by People & Baby
People & Baby, Struggling, to Close 44 Nurseries
In a surprising turn of events, private childcare provider People & Baby revealed plans to shut down 44 of its nurseries across France by the end of summer. This move comes as part of a restructuring strategy aimed at maintaining the company's long-term viability.
The announcement was made in a statement, stating that negotiations were underway with the staff representative bodies to resize the network of nurseries, adapting to existing challenges and regaining financial stability. The closure of these 44 unprofitable or struggling nurseries could potentially affect over 500 facilities in the country.
Families affected by the closures will be provided with support and relocation solutions. The decision to close these nurseries is planned for the end of summer, ensuring a smooth transition for the current academic year.
People & Baby, catering to nearly 11,000 children in almost 530 nurseries, came under the control of the Anglo-Saxon investment fund Alcentra in mid-April. The company's growth had been robust before facing turmoil following a high-profile incident in June 2022.
An 11-month-old girl passed away in one of the company's facilities in Lyon. Investigations later revealed that an employee was responsible for administering drain cleaner, which led to her death. The case drew intense scrutiny on the hiring practices and safety standards of private daycare providers in France.
In the aftermath, the company and its management faced criticism in an investigative book titled The Ogres, published in September 2023. To fund its growth, People & Baby had approached Alcentra in 2018. Dissatisfied with the management, the fund ousted founder Christophe Durieux from the leadership in April 2024.
Weakened financially, People & Baby announced the commencement of an accelerated safeguard procedure in November, and its plan was validated by the courts in March. Alcentra now holds over 99% of People & Baby's shares, following the conversion of part of the fund's debt into equity.
The closure of these 44 nurseries and the acquisition by Alcentra are significant developments for People & Baby. However, the recent incident involving one of their employees has brought forth concerns about safety standards and hiring practices in France's private daycare sector. Testimonies from the victim's parents suggest potential operational reforms may be necessary.
For more detailed information on these developments and financial aspects, consult recent financial filings and official statements from the companies involved. The available sources focus primarily on the impact of the criminal case on industry oversight.
- By the end of summer in 2025, Christophe, the former founder of People & Baby, will no longer oversee the business as Alcentra, an investment fund, ousted him following a financing restructuring strategy.
- Though the closure of 44 struggling nurseries across France could potentially affect over 500 facilities in total, People & Baby will provide support and relocation solutions for families affected by the closures.
- The closure of these unprofitable nurseries is part of an industry-wide adaptation to existing challenges aiming at regaining financial stability for businesses like People & Baby.
- The industry may move towards operational reforms in light of a high-profile incident involving an employee at one of People & Baby's nurseries in June 2022, which drew attention to hiring practices and safety standards in the French private daycare sector.
