A Rapid Succession of Child Care Closures Calls for Close Scrutiny
Is Guidepost Montessori on a path to becoming one of America鈥檚 most significant child care collapses?

Get stories like this delivered straight to your inbox. Sign up for 麻豆精品 Newsletter
The closure of a child care program can be devastating to children, families and the early educators who staff them. When a number of programs owned and operated by the same company 鈥 often referred to as a child care chain 鈥 start closing in rapid succession, it becomes cause for alarm and deserves attention. That鈥檚 what鈥檚 happening with , as multiple sites around the country are closing. This episode, which is one of the first illustrations in the U.S. of what can happen when a for-profit child care chain goes sideways, calls for close scrutiny.
Guidepost Montessori is a network of more than 130 Montessori-inspired child care programs and schools serving children ages birth to 18, with most programs focusing on children under 6 years old, according to its website. Most sites are located in the U.S., with some abroad. The network is owned and operated by Higher Ground Education, an education management company that is backed by tens of millions of dollars in . Higher Ground Education pursues what one of its funders refers to as a 鈥渉yper-scaling鈥 approach, and founder and CEO Ray Girn () once drew an , telling EdSurge in 2020, 鈥淚 think that there is an opportunity to achieve [with Guidepost] what ride-sharing apps or Airbnb have achieved: show the world another way of doing education at a sufficient scale.鈥
Yet just since the beginning of 2025, at least 16 closures have been reported by local news outlets: Guidepost has announced in Colorado (and paused a sixth site that was slated to open) as well as three sites in , two in , two in , and sites in , , and . These closures follow others that occurred abruptly last year in and in (the latter allegedly as a response to staff unionization attempts). Importantly, these are just the known closures that have been publicly reported in the news. In a Feb. 28 on the Higher Ground Education Substack, where the company shares weekly memos, new co-CEO Maris Mendes acknowledged that the company is 鈥渋n the midst of closing nearly 1/3 of the school communities that have so lovingly been built over the past 9 years.鈥
According to Mendes, the driving force behind the closures is the same hyper-scaling strategy Higher Ground鈥檚 investors saw as a selling point; she writes that, 鈥淚n our eagerness to meet the vast vision of our mission, we overextended ourselves, growing our school network beyond what we could effectively support, both financially and operationally.鈥 Specifically, the company is struggling to pay rent to landlords. Last year, after reportedly missing multiple rent payments, spurring the landlords to change the locks. In December 2024, Guidepost in Missouri for nearly $240,000 in non-payment of rent and 鈥渦nlawful detainer鈥 of the premises by Guidepost.
Similarly, to about the Colorado closures, Guidepost asserted that 鈥淥ur organization struggled to raise the capital necessary to support our schools, the majority of which were still recovering [from the pandemic], and suffering major losses. At many schools, we were running losses of $50,000+ per month that our creditors were no longer willing to subsidize, and we鈥檝e had to figure out how to manage.鈥疘n some cases, our landlords have been able to help us navigate these difficulties. They have generously provided rent relief, or renegotiated lease terms, in order to help an individual school to overcome its challenges and reach a point of financial sustainability. In other cases, that hasn鈥檛 been possible.鈥
The pandemic point is an interesting one. The pandemic certainly threw many child care programs for a loop, but it鈥檚 worth observing that through two funding rounds in January and April of 2021 and continued to open new sites at a rapid clip, suggesting an aggressive strategy despite the pandemic rather than one hobbled by it.
The trouble Guidepost finds itself in is reminiscent of other child care chain collapses or near-collapses outside of the U.S. As I , large chains like Australia鈥檚 ABC Learning and the Netherlands鈥 Estro Group previously saw rapid and widespread closures due to financial mismanagement or overly aggressive growth.
While much more remains to be investigated, Guidepost may be on the path toward becoming one of America鈥檚 most significant child care collapses. It鈥檚 unclear what the outcome will be for the network, but it鈥檚 certainly worth asking questions about how and why this happened, whether there are any problematic trends that reach beyond Guidepost and pose risks for other chains, and what can be done to stop a company relied on by so many families and educators from getting in this type of mess in the first place.
Get stories like these delivered straight to your inbox. Sign up for 麻豆精品 Newsletter