Thamesmead Children's Centre in Greenwich, an independently-run nursery with a board of trustees, is a registered charity but not part of the Sure Start Children's Centre programme.
In March, Ofsted took action to safeguard children after inspectors found the setting had a poor safety and hygiene record, was badly organised and delivered the curriculum inconsistently. They saw exposed electric wires and broken window catches, and noted that unprescribed medication was being administered, sometimes without prior written parental consent.
Since the last inspection in June 2003, which revealed that while the day care was satisfactory there were significant weaknesses in nursery education provision, seven complaints had been received. These related to the lack of qualified and vetted staff, and child protection procedures and health and safety.
The nursery, which catered for 50 children aged between two to five years, closed at the end of July, with debts amounting to 160,000 to Greenwich Council, which provided the administration and maintenance for the setting's payroll system.
An Ofsted spokesperson said, 'Thamesmead Children's Centre, Abbeymead, voluntarily suspended its registration while an investigation takes place to ensure it complied with the National Standards and remained qualified for registration. Ofsted has already taken action to ensure the safety and well-being of children. Our investigation remains open at this time.'
A spokesperson for Greenwich Council said, 'The company owes us somewhere in the region of 162,000.'
One of the nursery nurses told Nursery World she is owed 2,000 for a month's salary and overtime accrued since February. She said, 'The Board has no knowledge of childcare. The nursery was in a terrible state - it was a physically unsafe environment for children.'
Onay Kasab, Greenwich Unison branch secretary, said, 'There has been ongoing mismanagement and a constantly changing board of trustees and management; staff have not been paid properly and in some cases there were no contracts in place. Our constant ongoing correspondence with the Board has been met with negativity and denial.'
The registered owner of the nursery, listed on the Ofsted report as the Committee of Thamesmead Children's Centre, was unavailable for comment.
Personal details of board members were not available from the union, the council or Ofsted.
