ECE Provider Shut Down, Owing More Than $1 Million
NEWS – 7 March 2026
The companies that formerly operated three Happy Sprouts centres have gone into liquidation, according to a report in the NZ Herald by journalist Tom Raynel.
Two Happy Sprouts Educare Centres (in Putaruru and in Otorohanga) along with Happy Sprouts Hamilton were operated by two companies whose two directors and sole shareholders sought liquidation in mid‑December last year. However, the Inland Revenue Department (IRD) already had active winding‑up proceedings under way, meaning liquidators could not be appointed until IRD consent was granted in February.
The Ministry of Education withdrew the licences of all three centres on 25 December 2025 due to not meeting the minimum regulatory standards required to hold a licence.
Happy Sprouts Educare owes significantly more than the Hamilton centre, with most of its debt owed to the Inland Revenue Department (IRD). When the company went into liquidation, it owned five vehicles, one that was shared with Happy Sprouts Hamilton, and four of them still under finance. One of these was a 2025 Jeep Grand Cherokee, with $49,729 still owing to UDC Finance, bought at a time when the company was already facing ongoing licence breaches. New Zealand prices for that model range from about $84,990 to more than $119,990.
Altogether, $88,959 is owed for the four financed vehicles. Former staff are also owed in unpaid wages, holiday pay, and redundancy. The largest debt is to the IRD, which is owed more than $1 Million.
The second company, Happy Sprouts Hamilton, is in a stronger financial position, with a small estimated surplus available to creditors. Liquidators say it is still too early to know whether preferential or unsecured creditors will receive any payment, although the company’s assets currently exceed its liabilities.
Read the full NZ Herald story or find it in the Weekend Herald edition 7 March 2026, page C5.
See also: Funding – Why Funding is Under Constant Pressure and Why the Sector Keeps Asking for More
