ABC Learning Centres has failed to meet the latest self-imposed deadline for the release of its financial accounts and would not give any indication of when it might be released, but this may be the least of the child-care operator's problems.
ABC refused to address concerns about its survival amid growing signs that the issue is starting to affect its day-to-day operations.
It sought to reassure customers yesterday that its centres "continue to operate as usual" despite the company becoming entangled in a legal battle with 123 Careers, the company that has provided the majority of ABC's child-care staff.
The two companies were in the Queensland Supreme Court yesterday afternoon over an injunction obtained by 123 Careers last week preventing ABC poaching 123's relief staff, but the problem may be growing.
The Herald has learnt that another agency offering temporary staff to ABC, Select Education, withdrew its staff yesterday. ABC would not comment when contacted by the Herald yesterday and Select Education executives were not available for comment.
The trouble with 123 Careers began last week when ABC backed out of a $70 million acquisition of the recruitment agency less than a month after the deal was announced.
ABC is seeking the return of a $40 million deposit paid to 123 Careers under the deal put together by the former chief executive, Eddy Groves. The deal was announced the day he was forced to resign.
ABC would not offer any further detail yesterday on what is causing the lengthy delays to the release of its accounts, which are expected to contain huge losses and the restatement of prior-year earnings.
ABC has discontinued its previous practice of offering a date by which it expects to have the accounts completed and would only say it is "working to conclude the final outstanding matters as soon as possible".
The accounts are expected to put the company in breach of its banking covenants.
