Short Seller Report Alleges Safety Failures and Regulatory Concerns at KinderCare

KLC
October 04, 2025

A report published by The Bear Cave on April 3, 2025, alleged significant safety failures, regulatory concerns, and a deteriorating reputation at KinderCare Learning Companies, Inc. The report cited alarming safety incidents, including children left unsupervised, instances of abuse, and regulatory violations.

Specific allegations included a case where an 11-month-old tested positive for cocaine at a KinderCare center in Wisconsin, as well as reports of children escaping facilities, being locked inside after closing hours, and experiencing mistreatment by staff. The short seller stated that KinderCare has faced repeated scrutiny from regulatory agencies.

A KinderCare spokesperson responded, stating that the reported events are isolated incidents and do not reflect the company’s values. The spokesperson confirmed that strict protocols are followed, including prompt notification of families and licensing agencies, conducting investigations, and terminating at-fault teachers to ensure child safety.

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