Private investment house HIG Capital is taking over some two-thirds of the Dutch childcare group Estro which is on the verge of bankruptcy, Dutch media report on Friday.

Estro applied for court protection from creditors on Friday but has said all 360 daycare and after-school clubs will remain open until the end of July.

HIG Capital is taking over 250 of the daycare centres, which will relaunch next month under the brand name Smallsteps. Estro, which operates the Catalpa, Kiddy World, Elan and other daycare chains, provides services for 31,000 children.

Crisis

Estro blames the economic crisis and government cuts for its financial woes.

Known earlier as Catalpa, the company was bought by US private equity group Providence Equity Partners in 2010 and was bailed out of its financial difficulties in 2012 when KKR and Bayside Capital stepped in with further financing.

In 2013, Estro cut its workforce by 400 because of falling demand for places.

Parents’ organisation Boink said on Friday the government had cut spending on childcare by €500m.