Kid City USA Enterprises, Inc., a well-known operator of early childhood education and childcare services, has filed for Chapter 11 bankruptcy. The filing, which took place on January 2, 2026, marks a significant development for the Daytona Beach-based company, following a series of abrupt closures across several states, including Florida and North Carolina.
The company operates more than 140 locations across 11 states, providing daycare, preschool, and before-and-after school services for children aged six weeks to twelve years. Recently, the operator has faced severe financial challenges, leading to multiple shutdowns that left employees unpaid and parents scrambling for alternative childcare options. Notably, a facility in Leo closed less than two months before the bankruptcy filing, prompting significant concerns among affected families and staff.
According to PACER filings, the voluntary petition for Chapter 11 was submitted to the U.S. Bankruptcy Court for the Middle District of Florida. Byron Wright, III, an attorney with Bruner Wright, P.A., is overseeing the case. The proceedings will be supervised by Judge Jason A. Burgess.
The recent closures and the subsequent bankruptcy filing highlight the financial strain that Kid City USA has been under. As reported by WLTX, the company cited “financial strain” as the reason for the closures, which have affected not only its operations in Florida but also in other markets, including Lexington and various locations in North Carolina.
Financial Overview and Future Steps
The bankruptcy filing indicates that Kid City USA Enterprises, Inc. has estimated assets and liabilities in the range of $1,000,001 to $10 million. The company currently owes between 100 to 199 creditors. In its petition, the company paid $1,738 for the filing process, and the court has since requested additional documentation, including a Statement of Financial Affairs and a Disclosure of Compensation of Attorney.
The court has set a deadline of May 4, 2026 for Kid City USA to submit its Chapter 11 Plan and Disclosure Statement. At this point, the company has been authorized to continue operations while it navigates the bankruptcy process, which will determine its ability to stabilize and reorganize its business.
The filing also notes that funds will be available for distribution to unsecured creditors, which may provide some relief to those affected by the recent closures. Additionally, two affiliates of Kid City USA, 9034 Centennial CO Inc. and Another Spare Hive, Inc., have their own pending Chapter 11 cases, having submitted their petitions on November 17, 2025.
The situation surrounding Kid City USA Enterprises, Inc. underscores the challenges facing the childcare sector, particularly amid financial pressures. As the company works through its bankruptcy proceedings, its ability to meet court-mandated requirements and develop a viable reorganization plan will be crucial for its future and the families that rely on its services.
