The South Island operation of the Easy Mind child care service has been closed by liquidators, resulting in the loss of almost 50 full-time jobs.
Employees at Easy Mind were told two weeks ago that the company was having financial difficulty and a buyer was being sought.
Former Dunedin regional manager Linda Harvey says a buyer has been found for the company's operations in the North Island, but a sale of its South Island assets has fallen through.
South Island personnel were told on Sunday night that they are all out of a job.