A Fast Succession of Baby Care Closures Requires Shut Scrutiny

By Elliot Haspel

The closure of a kid care program might be devastating to kids, households and the early educators who workers them. When plenty of packages owned and operated by the identical firm — sometimes called a toddler care chain — begin closing in speedy succession, it turns into trigger for alarm and deserves consideration. That’s what’s taking place with Guidepost Montessori, as a number of websites across the nation are closing. This episode, which is among the first illustrations within the U.S. of what can occur when a for-profit little one care chain goes sideways, requires shut scrutiny.

Guidepost Montessori is a community of greater than 130 Montessori-inspired little one care packages and colleges serving kids ages start to 18, with most packages specializing in kids below 6 years previous, in keeping with its web site. Most websites are situated within the U.S., with some overseas. The community is owned and operated by Larger Floor Schooling, an training administration firm that’s backed by tens of thousands and thousands of {dollars} in enterprise capital funding. Larger Floor Schooling pursues what one in every of its funders refers to as a “hyper-scaling” method, and founder and CEO Ray Girn (who lately resigned) as soon as drew an express analogy to Airbnb, telling EdSurge in 2020, “I think that there is an opportunity to achieve [with Guidepost] what ride-sharing apps or Airbnb have achieved: show the world another way of doing education at a sufficient scale.”

But simply for the reason that starting of 2025, a minimum of 16 closures have been reported by native information retailers: Guidepost has introduced closures of all 5 lively websites in Colorado (and paused a sixth website that was slated to open) in addition to three websites in Ohio, two in Iowa, two in Minnesota, and websites in Missouri, Oklahoma, Virginia, and Wisconsin. These closures comply with others that occurred abruptly final yr in Virginia and in Oregon (the latter allegedly as a response to workers unionization makes an attempt). Importantly, these are simply the identified closures which have been publicly reported within the information. In a Feb. 28 submit on the Larger Floor Schooling Substack, the place the corporate shares weekly memos, new co-CEO Maris Mendes acknowledged that the corporate is “in the midst of closing nearly 1/3 of the school communities that have so lovingly been built over the past 9 years.”

In keeping with Mendes, the driving power behind the closures is identical hyper-scaling technique Larger Floor’s traders noticed as a promoting level; she writes that, “In our eagerness to meet the vast vision of our mission, we overextended ourselves, growing our school network beyond what we could effectively support, both financially and operationally.” Particularly, the corporate is struggling to pay lease to landlords. Final yr, two Guidepost Montessori websites in Northern Virginia closed after reportedly lacking a number of lease funds, spurring the landlords to alter the locks. In December 2024, Guidepost misplaced a civil judgment in Missouri for almost $240,000 in non-payment of lease and “unlawful detainer” of the premises by Guidepost.

Equally, in a letter to Denver ABC 7 in regards to the Colorado closures, Guidepost asserted that “Our organization struggled to raise the capital necessary to support our schools, the majority of which were still recovering [from the pandemic], and suffering major losses. At many schools, we were running losses of $50,000+ per month that our creditors were no longer willing to subsidize, and we’ve had to figure out how to manage. In some cases, our landlords have been able to help us navigate these difficulties. They have generously provided rent relief, or renegotiated lease terms, in order to help an individual school to overcome its challenges and reach a point of financial sustainability. In other cases, that hasn’t been possible.”

The pandemic level is an attention-grabbing one. The pandemic actually threw many little one care packages for a loop, however it’s value observing that Guidepost raised $70 million in fairness by way of two funding rounds in January and April of 2021 and continued to open new websites at a speedy clip, suggesting an aggressive technique regardless of the pandemic moderately than one hobbled by it.

The difficulty Guidepost finds itself in is harking back to different little one care chain collapses or near-collapses outdoors of the U.S. As I wrote final yr, massive chains like Australia’s ABC Studying and the Netherlands’ Estro Group beforehand noticed speedy and widespread closures as a consequence of monetary mismanagement or overly aggressive progress.

Whereas rather more stays to be investigated, Guidepost could also be on the trail towards changing into one in every of America’s most important little one care collapses. It’s unclear what the end result might be for the community, however it’s actually value asking questions on how and why this occurred, whether or not there are any problematic traits that attain past Guidepost and pose dangers for different chains, and what might be finished to cease an organization relied on by so many households and educators from getting in this kind of mess within the first place.

—

This story was produced by The 74, a non-profit, impartial information group targeted on training in America.

***

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