KinderCare is now down approximately 70% since The Bear Cave's investigation earlier this year, as the company lowers guidance again.
The company receives nearly one billion dollars in government subsidies and faces widespread child abuse allegations.
The Business Model
KinderCare operates around 1,500 daycares across 41 states and calls itself "the largest private provider of high-quality early education and childcare services in the United States."
Investors believe KinderCare can continue its private equity growth playbook in the public markets and raise prices, cut costs, and grow through acquisitions to dominate America's fragmented childcare landscape.
Safety Concerns
I believe KinderCare often fails to deliver the safe and nurturing environment it promises parents and taxpayers.
Toddlers escape from the KinderCare daycares onto busy roads, are left alone, are locked inside KinderCare buildings and buses, and are physically and verbally abused, with many cases going unreported until bystanders raise an alarm or video evidence circulates.
Conclusion
In summary, KinderCare is a flawed business that harms the children and families it claims to support.
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