Parents of the centre were notified on Monday that the service would close immediately and may not open until the council can organise new arrangements.

It is believed the 14 staff were also handed their terminations the same day. One mother, who didn't want to be named, told The Border Mail some parents will have to give up their employment to look after their children.

Greater Hume Council were asked to take on the centre by the former management and have started discussions with the NSW Education Department to start the ball rolling.

But because of paperwork and re-employment the centre isn't expected to open until late January at the earliest.

"It is council's aim to have the Holbrook service opened for children from late January 2020 subject to the smooth transfer of the required regulatory approvals and staff recruitment processes," council said in a statement.

Holbrook Early Learning Centre was run by a volunteer committee and have blamed the "highly regulates" childcare industry for the closure.

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"To be on this management committee is a huge legal and ethical responsibility and the past and present management committee members volunteer 1000s of hours each year to try and ensure the organisation meets all of the requirements," the committee said in a letter to parents.

"This task is forever becoming more difficult with the highly regulated and ever changing childcare industry and a large cohort of 14 staff to manage.

"That being the case, we believe the task to ensure the Holbrook Early Learning Centre is meeting all of its obligations is too great for volunteers."

The committee agreed the council was the best choice to take over child care services in the town and that they would lease the building for $1 a month.

Department of Education branch manager Jane Hayden said the government's priority is to ensure families have ongoing access to child care in Holbrook.

"We will continue financial support through the Community Child Care Fund irrespective of whether the child care operator is the Holbrook Early Learning Centre Incorporated or a new provider," she said.

The council also run childcare in neighbouring Culcairn and Walla Walla.