Tree House share price tanked over 7 per cent taking investors and parents by surprise after Tree House nursery has closed 113 branches across India leaving the future of children's education unsteady. Tree House nursery has informed the parents that the sudden discontinuation in the service is due to their inability to pay the staff for months now.
Panicked parents gathered at the head office at Morya House in Andheri West only to discover a deserted office. In return, they attended office landline, only to receive calls from branches all around the city and vendors who haven’t been paid.
Out of the 113 branches all across India, 36 branches are in Mumbai, 16 in Hyderabad, 10 are in Kolkata, 4 are in Lucknow, 3 are in Ranchi, 2 are in Nagpur, 1 is in Patna, among other cities.
Angered by this decision, the parents have filed a complaint at Mumbai's Charkop police station. Vijay Bhalshankar, a senior inspector confirmed that they had received a complaint regarding closure of nursery as teachers haven’t been paid.
Fearing loss of investment, some parents stated that they had paid the advance for next year as well. Others fear that their child will fail to secure admission in other schools without documents, which were presently with the Tree House.
A concerned parent said that the fee was not constant across branches. The branches at plush areas usually charge more. They had been trying to find the person who would understand the situation but all were oblivion, he added. He concluded that he had paid Rs 5000 advance for next year for his child's education.
As the trading session commenced on 27th Dec, Tree House share price touches a new low at Rs. 15.85. The stock opened at Rs. 16.85 against its previous closing at Rs. 17.60.