LEASE WAS NOT RENEWED
The franchisor of Red SchoolHouse said that the Toh Tuck branch was shuttered because the lease was not renewed and the branch currently faces liquidation.
The franchisor also said it has helped with the students’ transition to other schools.
Documents seen by CNA showed that as of early June, the preschool’s director owed creditors almost S$300,000 (US$233,000).
The debts include enrolment deposits, rental fees and unpaid loans from three banks such as DBS.
ECDA said while the branch ceased operations due to business considerations, operators still have a responsibility to give sufficient notice as such closures are disruptive to the families involved.
“ECDA understands that the operator had earlier considered relocating but subsequently decided to cease operations,” it added in a statement to CNA on Thursday.
Preschools considering cessation of operations must provide six months’ notice to both parents and ECDA before ceasing operations.
They must also inform parents and ECDA once they are notified of the possibility of non-renewal of tenancy agreements.
Operators that breach these requirements may face regulatory actions, including being issued warning letters or being barred from applying for future preschool licences.
The sudden closure of Red SchoolHouse @ Toh Tuck happened just weeks before that of Little Paddington Preschool at Binchang, which was given a warning by ECDA for closing after just a week’s notice.
