The Dutch child has a hard time. The number of children in the nursery since 2011 has declined by 100,000 and the financial position of the institutions is poor. This writes the Financieele Dagblad on the basis of a report by Trade Association Child Netherlands, on Monday published.
The industry has partly due to budget cuts by the central government the childcare benefits, on the other hand they have to deal with rising unemployment among parents with young children. Marielle Rompa, the president of the association said in the Financieele Dagblad: “We are at the end of our ability to cope with the downturn.”
Last year, a record number of 98 institutions went bankrupt, including leader Estro Group. For years, child care institutions could grow by support from the government, but the subsidies are cut off. In recent years childcare organizations have shrinkage still captured by eating into equity. But the space to hold it any longer is full by now disappeared, says the association.
“There is little to no room for investments to expand capacity as demand picks up child again.” Funding from equity is almost impossible, debt financing no longer accessible, the report said.
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