Tower Road Christian Preschool Closure Report (Interim)
7th December 2021
Prepared by - Board of Directors - Spence Reichardt and Kobus Engelbrecht
During 2019 and 2020 Tower Road Christian Preschool incurred operating deficits of $18,650 and $81,253 respectively, with the 2020 deficit being largely driven by a $75,585 increase in staff costs. This trend continued into the first quarter of 2021.
The preschool was also experiencing a steady decline in enrolment numbers from 38 in 2019 to 28 by early 2021. Predicted natural attrition of five year old leavers for the following 12 months was 12 and there were no long term pre-bookings.
While the board of Matamata Christian Early Learning Centres Ltd was always looking for strategies to maintain and grow the preschool role, around mid 2020 the board began an in depth review of the preschools operations focusing on matching staff costs to income generated, with consideration of meeting all MOE, ERO, Teachers Council, Immigration and employment regulatory requirements. After seeking professional advice and developing and refining strategies, with the help of staff, the board successfully implemented a major restructuring plan in May 2021.
Thanks to a huge effort by the staff, and especially by the newly appointed Centre Manager, the restructuring stabilised the financial picture, however as the year progressed, taking into account predicted income, it became increasingly apparent to the board that the preschool would not be able to meet its financial commitments, particularly staff holiday pay over the Christmas closedown period.
Under these circumstances the board is legally bound to seek legal advice which it did on Wednesday 13th October. The advice indicated that if liquidity was at risk then early liquidation was the best option.
The board made one last effort to raise $50,000 to support the preschool into late 2022, however this effort was unsuccessful and Matamata Christian Early Learning Centres Limited was placed into liquidation on the 2nd November 2021.
Tony Maginness and Jared Booth of Bakertilly SR were appointed liquidators. They can be contacted on 09 309 0463 or email email@example.com .
The first report of the liquidator was received on the 11th November 2021 and is available alongside this report. Please note the following clause of the report.
Clause 2.3 Proposals for Conducting the Liquidation - The liquidators will realise all assets, and will conduct an investigation into the Company’s book, records and affairs to:
- Confirm that all assets have been properly accounted for and secured;
- Determine whether there are any other avenues of discovery;
- Determine whether the company’s officers have complied with their duties and taken appropriate steps where necessary.
If you are aware of any party who may be interested in the purchase of the assets, or if you have any information that may be relevant to the liquidators investigations, please contact the Liquidators urgently.
The board of Directors are holding a public meeting at Matamata Christian School at 7.00pm on Tuesday 14th December to listen to any questions and concerns.
The board will issue a final report when the liquidators have completed their review and issued their final report.