A popular Scarborough childcare service has suddenly closed due to the charity not being financially sustainable.
CCS Childcare provides childcare and education for children aged three months to 11 years.
The charity’s voluntary management committee told staff in a letter seen by The Scarborough News: “We have explored a number of options to see if we can make the setting financially viable and keep it open, we have been left with no alternative but to make this difficult decision.
“The cuts that the government are making to funding, the living wage and pension contribution and the significant drop in the number of children using the setting have all contributed to this decision.”
The Statement of Financial Activities shows a 9% reduction in fee income in 2015-16, which has led to a deficit for the year of £11,660.
The Falsgrave Road service, which was open weekdays and operated a baby room, toddler room, pre-school, out of school and holiday club, highlighted staffing being an issue resulting in rooms having to be closed and parents having to find alternative childcare.
The Scarborough News understands a meeting took place with staff on Sunday when they were told of an immediate closure of the premises – which hosts around 50 children.
This is despite efforts from the committee and North Yorkshire County Council Early Years Team to explore ways to keep CCS open for the children and a number of staff members.
A council spokesman said: “We have worked with them to help their committee to follow appropriate procedures in managing the closure with staff and families and have supported parents to find alternative childcare provision for their children.
"They can contact the Families Information Service on 01609 533483. We are also assessing the number of childcare places in the area to ensure we are meeting our statutory duty on childcare provision.”
Some parents have reacted to the closure on Facebook.
Jo Whitehead said: “So sorry to hear this sad news. I hope everyone involved the best for the future.”
Jane Sunderland said: “Such a shame for all the staff and families with children there.”
CCS failed to respond to The Scarborough News with a comment following the closure.