Family First said demand had 'continued to decline' and it was 'no longer financially sustainable'.
When Thomas Knapp received an email to say his two-year-old son's nursery would close in 29 days, the news left him and other families facing sudden upheaval and with many unanswered questions. The closure of Hackney Day Nursery and Preschool, run by the private equity-owned Family First Group, was announced shortly after monthly fees were taken.
Family First Group, which operates 100 nurseries across the UK, said demand at the nursery had declined to the point it was no longer financially sustainable to operate. But Knapp claimed spaces locally were already scarce and often unaffordable, making the decision difficult to understand. He did not realise the nursery was part of a private equity group when choosing it – but now believes this may be the reason for its downfall.The family had chosen the nursery long before his son Émile was born, drawn by the outdoor space, convenient location and what they saw as a stable, 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," he said. "It's not a decision that's made lightly." Émile went on to settle there for 18 months, forming strong bonds with carers who became central to his daily life. In the months leading up to the closure, Knapp says he began noticing signs of underinvestment - a deteriorating garden, delayed repairs and an entry intercom that had become increasingly unreliable."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 said. " "If the nursery had said, look, times are tough, we're going to have to increase the fees… we'd have paid more." He believes the neglect of the space may have pushed families away, ultimately feeding into the justification later given for shutting the site. Knapp told the BBC that staff had also been "kept in the dark" and that many were "in tears" when the news was shared. Family First Group said it had made "considerable efforts over several years" to keep the nursery viable, including keeping fees as affordable as possible for local families, but insisted that it was no longer sustainable. The group said it appreciated the notice period "feels short" but said it told parents and staff as soon as a final decision had been made on the closure.The situation also raised broader questions for Knapp about private equity's influence on early years 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," Knapp said.The announcement triggered a scramble for alternatives, with some families told that local nurseries would be full until 2027. The only viable options for Émile were between 20% and 40% more expensive, and settling‑in sessions required both parents to take time off work. Knapp said parents tried to arrange a group meeting with Family First Group to ask further questions about any attempts to save the nursery, but this request was declined."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 said: "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."A leading childcare academic says the sudden closure of a Hackney nursery reflects a wider national pattern, with settings in deprived areas facing the greatest risk of shutting down. Antonia Simon, a professor of social policy at UCL, told BBC London her research shows nursery closures were "not evenly distributed" and disproportionately affected the poorest communities. She said the structure of the childcare market is a key factor. England's largest nursery chains are increasingly owned by private equity-backed or profit‑driven groups. Because government funding follows the child rather than the provider, private equity owned nurseries also received "free hours" funding - meaning a significant share of early‑years investment now flows into for‑profit companies. These groups tend to expand in more affluent areas, while nurseries in less affluent neighbourhoods struggle to remain financially viable.Many private nurseries operate with "little to no reserves" and rely on continuous profitability, which "makes them quite vulnerable to market economics and collapses". Simon also said free childcare hours do not cover the true cost of provision, and parents in deprived areas are less able to top up fees - further increasing financial strain on providers. She said: "When a closure happens, the impact is immediate. Families often find there simply aren't spare places nearby. "Places like London in particular are already highly pressured in terms of childcare capacity. That's exactly how a childcare desert forms." She is calling on the government to monitor the trend more closely and introduce "common‑sense" oversight measures, including requiring providers receiving public money to demonstrate financial stability and improving transparency in how nursery groups are run. A Department for Education spokesperson said via a statement that it was "creating hundreds of new school-based nurseries in areas with the greatest need to boost access even further. "We know providers face wider cost pressures, which is why we have increased funding rates above inflation and are backing the workforce with financial incentives and new training routes. "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.Is screen time always bad and how do I manage it?Tributes paid to man who died in Euston shootingParents promised more free childcare by party leaders Tax breaks for parents, more funded care for nursery-age children and help to get parents back into work are among the campaign pledges.
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