Collapse of nursery care company

The KidCare nursery at the Parliament has closed

The childcare company running the crèche at Holyrood and nurseries across central Scotland has collapsed.

KidCare, a subsidiary of the charity One Plus, ran crèches and nurseries at Holyrood, Glasgow and Strathclyde universities and four Scottish centres.

News that one of Scotland's largest nursery providers had folded came as a complete shock to staff and parents.

The directors of the company had tried their "utmost" to keep the business running, said the liquidators.

Nurseries at Clydebank, a women's employment centre in Glasgow and two others in Paisley and Bishopbriggs have also closed.

Naturally, we are extremely disappointed by this news Parliament spokesman

The crèche at Holyrood, employed two full-time staff and four part-time workers and was hailed as one of the family friendly initiatives at the new Scottish Parliament.

KidCare had a contract, thought to be worth more than £100,000 a year, to provide crèche facilities free to the public and at a charge of £3 an hour to MSPs and other parliamentary staff.

A Scottish Parliament spokesman said: "KidCare informed its employees at Holyrood on Monday afternoon the company would go into liquidation with effect from 1800 GMT.

"Naturally, we are extremely disappointed by this news. Our immediate response has been to inform all parents who made bookings for this week that the crèche facility will not be available.

"We hope to provide an update on the crèche service as early as possible this week."

Just before Christmas

Insolvency specialist Derek Forsyth, a partner of Campbell Dallas Chartered Accountants, has been appointed provisional liquidator of childcare provider KidCare Ltd.

Mr Forsyth said: "KidCare had been loss-making for some time in what is generally a very competitive market with a high staff-child ratio and strict regulatory requirements.

"The directors of the company had tried their utmost to keep the business running, attempting to re-finance and to find a buyer.

"However, unfortunately their efforts ultimately proved unsuccessful and they had no choice but opt for liquidation.

"The closure has come as a shock to staff who have sadly lost their jobs in the run up to Christmas, and for parents, who will need to make alternative childcare arrangements."