The collapse of a second major child-care provider in two weeks has prompted renewed calls for local councils to manage the sector.
CFK has been placed in receivership a day after it went into voluntary administration when attempts to sell its 43 centres to ABC Learning failed.
Now, the care of 4000 children and the future of 500 workers is up in the air.
Australian Services Union boss Paul Slape says the federal government needs to assure the future care of children and the jobs of workers.
“The second collapse does really demonstrate that there is a serious problem in the privately run childcare industry,” Mr Slape said.
“We just believe that local government is ideally placed to fill some of the vacuum that these collapses will create.”