Nursery World - State competition forces chain closures

Five settings in the UK's largest nursery chain have been earmarked for closure because of 'increased competition from Government programmes'. 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.

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.'

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