Overview
Olvera Advisors was appointed to manage Bollygum Childcare Centre Pty Ltd and the Bollygum Miles Family Trust, which operated two childcare centres in South Penrith and Lethbridge Park, NSW. Our role was to stabilise operations, address regulatory and financial issues, and ultimately maximise returns through the sale of the businesses and property.
Challenges
- Operational paralysis: The director attributed the business failure to financial and operational management paralysis, in part due to a marital dispute.
- Non-compliance issues: The company had received multiple regulatory non-compliance reports, including obligations under the Department of Education and Australian Children’s Education and Care Quality Authority.
- Financial instability: Employee wages and operational funding were constrained, with financial records incomplete and noncompliant.
Turnaround Plan
Our team quickly reviewed operations and implemented control measures to allow the centres to continue trading. We took immediate actions to address critical maintenance issues, secure bank funding for wages, engage external consultants to review regulatory compliance, and liaise with government authorities.
During the 6-month trading period, we managed staff issues and budgetary constraints. Regulatory compliance was achieved with an increase in occupancy whilst the childcare centre was under our control as administrators. Additionally, we launched a structured marketing campaign for both childcare businesses and the company’s residential property.
Results
Both childcare businesses were successfully sold, providing a generous return to the secured creditor. The centres continued operating under the new ownership, which preserved employee jobs and upheld community services while ensuring compliance with regulatory standards.
Key Drivers of Success
- Quick action to stabilise and resume operational control of childcare centres
- Timely engagement with third party consultants to address compliance issues
- Securing working capital to maintain employee wages and centre operations
- Structured marketing campaign for business and property sales
Key Takeaway
By taking decisive control and stabilising operations, Olvera Advisors ensured that Bollygum Childcare Centre could continue their business, achieve regulatory compliance, and maximise value for creditors. We also preserved the long-term viability of two important community childcare centres.
