Childcare in America was already expensive and difficult to find. Now, families may face even fewer options as providers across the country close locations and scale back operations.
In June 2025, Higher Ground Education Inc., once the world’s largest Montessori school operator, filed for Chapter 11 bankruptcy, a sign of the mounting pressures facing childcare providers nationwide.
Childcare chains such as Bright Horizons, alongside private networks and federally funded programs, are actively closing underperforming locations as the industry grapples with staffing shortages, rising operating costs, and the loss of pandemic-era support.
The downsizing comes at a time when many American families are already struggling to afford care.
According to a Pew Research Center survey, 36% of adults under 50 who are unlikely to have children cite affordability as a major reason. The American Family Survey echoes this, revealing that more than 70% of Americans agree that raising children is unaffordable, a view shared by 74% of those earning above $80,000.
According to parents, childcare is the second-largest child-rearing expense, behind only food and household goods:
- Food & household goods: 38%
- Child care: 29%
- Healthcare: 11%
Source: Rocket Mortgage
The U.S. Department of Health and Human Services (HHS) defines “affordable” childcare as 7% or less of household income, the Economic Policy Institute notes. Yet Department of Labor data reveal that full-day care actually consumes 8.9% to 16% of a typical family’s median income.
Access remains a challenge as well. A landmark 2018 study by the Center for American Progress (CAP) found that 51% of young children in the U.S. live in a “child care desert,” where demand for licensed child care slots outpaces supply.
Bright Horizons has closed 90 centers over the last three years
National child care provider Bright Horizons reported on May 5 its first-quarter financial results, revealing revenue in line with expectations and adjusted earnings per share exceeding the company’s internal guidance.
Revenue increased 7% year over year, reaching $712 million, while net income declined 10% to $34 million.
During the quarter, the child care chain closed 24 underperforming locations and opened two, resulting in a net closure of 22 centers.
“We closed 24 centers this quarter as we continue to position our portfolio to serve employees of our client partners and working parents where they live and work,” said Bright Horizons CEO Stephen Kramer during the earnings call.
The company’s SEC filings also reveal that between Dec. 31, 2022, and March 31, 2026, Bright Horizons executed a net reduction of 90 operational childcare centers, amounting to an 8.3% downsizing of its entire brick-and-mortar infrastructure.
Image source: Pixabay.
Why has Bright Horizons been closing childcare centers?
Bright Horizons Chief Financial Officer Elizabeth J. Boland expanded on the financial reason, explaining that closures target the company’s lowest-performing, lowest-occupancy facilities.
“Our bottom cohort, centers below 40% occupancy, has now fallen below 10% of these centers, improving from 13% in the prior year to 8% this quarter, reflecting both enrollment progress and the results of our focus on closing underperforming centers,” said Boland.
The CFO added that the company plans to continue with portfolio rationalization.
During the earnings call, the company’s management also revealed that Bright Horizons plans a 25 to 30 net reduction of centers for the full year, despite the outsized first quarter, as the company also plans some openings.
Bright Horizons controversy: not all closed centers were underperforming
Only parents can understand what it is like leaving your child with a total stranger. That’s why many parents carefully assess facilities and talk with workers and providers before enrolling their children in day care or preschool.
Unfortunately, a chain’s size and good reputation are not always a guarantee that everything will work out as it should. Bright Horizons’ shrinking footprint also involves forced shutdowns amid a controversial scenario.
New York City health officials have permanently closed Bright Horizons’ Manhattan branch, alleging workers committed disturbing acts of child abuse, reported The New York Times, citing official documents.
The shutdown comes after serious criminal charges were filed against former employees. Prosecutors say these workers abused and mistreated toddlers under their care. The alleged actions included taping a child’s mouth shut, hitting children with metal water bottles, dragging a child by the hair, and spraying children with cleaning mixtures containing bleach.
In March 2026, Bright Horizons agreed to give up its permit for a Manhattan day care center, settling with the city, reported CBS News.
A spokesperson for Bright Horizons sent CBS News New York the following statement.
“We understand that any incident affecting a child is incredibly distressing, and we make it our priority to address every issue carefully and comprehensively. Over the past year, we have made enhancements to our safeguarding protocols, appointed a new leader of New York operations, enhanced staff training on identifying and reporting concerns, and increased oversight staff at every center.”
Bright Horizons is used by more than 1,000 of the world’s top employers
Bright Horizons was founded in 1986 by husband-and-wife team Linda Mason and Roger Brown. The couple had a vision of addressing the challenges working parents faced all over the country.
“Today we offer child care, elder care, and help for education and careers — tools used by more than 1,000 of the world’s top employers and that power many of the world’s best brands,” reads the company’s description on its official website.
Bright Horizon services
- Early Education & Preschool for Families
Infant CareToddler Care
Preschool
Kindergarten Prep
Kindergarten
- Family Solutions for Employers
- EdAssist Solutions for Employers
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