$120m wiped out in childcare horror show

Yahoo

8 hours ago

The company that operates the Point Cook childcare centre at the heart of Victoria's alleged child sex abuse horror is crashing in value, losing some $120m in the market since Tuesday.
G8 Education, a listed company on the ASX, has declined some 16 per cent since Tuesday's revelation that Joshua Brown, a childcare worker at the company's Creative Garden Point Cook centre, allegedly sexually abused eight children aged from five months to two years.
The decline has wiped out about $120m in market value as investors flee the company.
On Thursday, investment bank Macquarie downgraded its 12-month price target for the stock to $1.15 from $1.53, citing the Point Cook incident.
G8 slumped 7 per cent across the day and traded for just $1 at 3.30pm for a market capitalisation of some $765m.
In a statement from Tuesday, the company acknowledged that a 'former G8 Education team member' had been charged with offences involving children.
'The current charges against the former team member are in relation to offences involving children at Creative Garden Point Cook only,' the company said.
'These allegations are serious in nature and are extremely distressing.
'We are focused on supporting all those impacted not just at our centres but across the community.
'Aligned with G8 Education's commitment to child safety and protection, during the former team member's employment, all required employment and background checks, including working with children checks, were current in accordance with legal and regulatory requirements … we are co-operating fully with Victoria Police, the Victorian government and other relevant authorities as part of the investigation.'
The company added that it had 'no tolerance' for behaviour that compromised the safety or wellbeing of children.
'As this is now a legal matter, we are unable to comment further on the specifics of the case,' the company said.
G8 operates more than 400 centres across the country.
For the 2024 calendar year, the company reported $1.021bn in revenues and net profits of $67.7m.
G8 has struggled across 2025, even before this week's dramatic tumble.
Year-to-date, shares in the company are down about 25 per cent.
On Tuesday, Victorian Police revealed they had charged Mr Brown, 26, with 70 offences after he allegedly abused eight children at the centre.
It is alleged some children were as young as five months.
A widespread investigation has now been launched, with Victoria's chief health officer saying 1200 children have been recommended to undergo infectious diseases testing.
Mr Brown was arrested on May 12 and is due to appear at Melbourne Magistrates Court on September 15.
Police allege Mr Brown worked at 20 centres across the state between January 2017 and May 2025.
A second man known to Mr Brown, Michael Simon Wilson, has also been charged with child sex offences.
On Wednesday afternoon, Victorian Police revealed Mr Wilson was a 36-year-old man from Hoppers Crossing.
He has been charged with raping a teenage boy, possessing child abuse material, and bestiality.
Mr Wilson's alleged offences are not believed to involve childcare centres or any of Mr Brown's alleged victims.
The allegations against Mr Brown and Mr Wilson have rocked the country.
Education Minister Jason Clare, speaking on Wednesday, promised urgent reforms into child safety, including cutting off funding for centres that fail to meet minimum standards.
He also flagged changes to background checks for workers.
'It's taken too long to do the work necessary to make sure that our Working with Children Check system is up to scratch,' he said.
'In too many examples, a perpetrator is eventually caught and arrested and sentenced, there's somebody that got a Working with Children Check because they had no prior criminal record,' he said.
Effettua l'accesso per consultare il tuo portafoglio