Economy

Small companies owed big money by ABC Learning Centres

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The bad news from the collapse of ABC Learning Centres has spread beyond the childcare sector, with toymaker Funtastic and stockbroker Austock revealing they are owed millions by the company.

The bad news from the collapse of ABC Learning Centres has spread beyond the childcare sector, with toymaker Funtastic and stockbroker Austock revealing they are owed millions by the company.

Melbourne-based stockbroker Austock Group – of which ABC founder Eddy Groves is a shareholder – says it has a credit exposure of $4.4 million to the failed childcare provider, including $3.2 million in unpaid fees and $1.2 million for property services.

“Austock is in discussions with ABC’s receivers and depending on the outcome of these discussions a substantial one-off provision may be required at year end in respect of these amounts,” the company said in a statement to the ASX.

Meanwhile, Funtastic says it may need to make a “substantial” one-off provision relating to its exposure to the collapsed childcare giant. Funtastic, which was part-owned by ABC and was a key supplier to the group, is owed around $8.5 million.

However, Funtastic’s exposure could increase by another $3.1 million as a result of supply deals with a related ABC company called ABC Development Group.

“These other entities are not in administration or receivership and we are presently actively pursuing collection of these monies,” the company told investors in a statement.

The administrator of ABC, insolvency firm Ferrier Hodgson, was due to stage the first meeting of creditors in Brisbane this morning.

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