When Thomas Knapp received an email informing him that his two-year-old son’s nursery would shut down in just 29 days, he and other families were left grappling with unexpected disruption and numerous unanswered questions.
The announcement regarding the closure of Hackney Day Nursery and Preschool, managed by the private equity-backed Family First Group, came shortly after parents had paid their monthly fees.
Knapp reached out to express his concerns, stating that parents were left to navigate the situation alone while trying to secure alternative childcare options.
Family First Group, which oversees 100 nurseries throughout the UK, cited a significant decline in demand at the nursery, claiming it had become financially unviable to continue operations.
However, Knapp argued that local childcare spaces were already limited and often too expensive, making the closure decision difficult to comprehend.
He was unaware that the nursery was part of a private equity firm when he chose it, but he now suspects that this ownership may have contributed to its demise.
Concerns Over Investment and Care Quality
The family had selected the nursery long before the birth of their son, Émile, attracted by its outdoor facilities, convenient location, and what they perceived as a stable and familiar staff team.
„We really had a good feel for the place, and the nursery manager at the time really sold us on the vibe,“ Knapp stated. „It’s not a decision that’s made lightly.“
Émile attended the nursery for 18 months, developing strong relationships with caregivers who played a significant role in his daily routine.
In the months leading up to the closure, Knapp noticed signs of neglect, including a deteriorating garden, delayed repairs, and a malfunctioning entry intercom.
„No love, no money spent on it – when I say no love, I mean no love from the parent company, because the staff there are fantastic,“ he remarked.
He expressed that if the nursery had communicated the financial difficulties and proposed a fee increase, they would have been willing to pay more.
Knapp believes that the lack of investment may have deterred families, ultimately justifying the closure.
He also noted that staff members were left uninformed about the situation and many were visibly upset when the closure was announced.
Private Equity’s Impact on Early Childhood Education
Family First Group stated that it had made significant efforts over several years to keep the nursery operational, including maintaining affordable fees for local families, but ultimately deemed it unsustainable.
The group acknowledged that the notice period „feels short“ but emphasized that parents and staff were informed as soon as a final decision was reached.
This situation has prompted Knapp to question the broader implications of private equity in early childhood education.
„From what I understand about private equity is you invest upfront early, you make back your money, you sell and get out – that is the model as I’ve understood it,“ he explained. „That to me is completely incompatible with healthcare of any form, early years care and so on.“
The announcement led to a frantic search for alternative childcare, with some families being told that local nurseries were fully booked until 2027.
The only feasible options for Émile were between 20% and 40% more expensive, and settling-in sessions required both parents to take time off work.
Knapp mentioned that parents attempted to organize a group meeting with Family First Group to inquire about any efforts to save the nursery, but their request was declined.
„They didn’t wish to talk to us as a group because every child’s situation is different,“ he said.
„We’re not asking about our children, because I can guarantee that the board of directors at Family First Group know nothing about my child.“
A spokesperson for Family First Group commented, „This has been an incredibly difficult decision, taken after exploring all reasonable options, including a potential sale of the nursery. Unfortunately, this was not successful. We remain proud of the care provided at the nursery and grateful to the families and colleagues who have been part of its community.“
Wider Implications for Childcare in Deprived Areas
Émile has since begun transitioning to a new nursery despite the abrupt change in his routine.
Antonia Simon, a prominent childcare researcher, indicated that the sudden closure of the Hackney nursery reflects a broader national trend, with facilities in economically disadvantaged areas facing the highest risk of closure.
„Nursery closures are not evenly distributed and disproportionately affect the poorest communities,“ Simon stated.
She explained that the structure of the childcare market plays a crucial role, as England’s largest nursery chains are increasingly owned by private equity or profit-driven entities.
Because government funding follows the child rather than the provider, private equity-owned nurseries also receive funding for „free hours,“ resulting in a significant portion of early-years investment flowing to for-profit companies.
These organizations tend to expand in wealthier areas, while nurseries in less affluent neighborhoods struggle to maintain financial viability.
Simon noted that many private nurseries operate with minimal reserves and depend on continuous profitability, making them vulnerable to market fluctuations.
She added that the funding for free childcare hours does not cover the actual costs of provision, and parents in low-income areas are less able to supplement fees, further exacerbating financial pressures on providers.
„When a closure happens, the impact is immediate. Families often find there simply aren’t spare places nearby,“ she said. „Places like London in particular are already highly pressured in terms of childcare capacity. That’s exactly how a childcare desert forms.“
Simon is advocating for the government to closely monitor this trend and implement sensible oversight measures, including requiring providers receiving public funds to demonstrate financial stability and enhancing transparency in the management of nursery groups.
A spokesperson from the Department for Education stated that they are „creating hundreds of new school-based nurseries in areas with the greatest need to boost access even further.“
They acknowledged that providers are facing broader cost pressures, which is why funding rates have been increased above inflation, and they are supporting the workforce with financial incentives and new training pathways.
„We continue to monitor developments in the early years sector, including the role of private equity, in line with our Best Start in Life strategy. We’ll set out any further actions in due course,“ the spokesperson added.
Families affected by the closure are encouraged to share their stories and concerns through various channels, including email and social media.
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