Parents and children were shocked and saddened when they discovered Fulwood Nursery, on Nethergreen Road, Fulwood, was closing immediately.
Some families were left with no childcare while others were concerned they would be left out of pocket after paying fees.
Nursery bosses said the decision to close had been taken due to 'financial reasons'.
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They reassured parents that no childcare fees would be taken for February.
Matthew Gregg, whose son attended the nursery, said parents had originally been told it would be closing on February 17, but three days later staff said it would be shutting the same day.
He said: "There were about 30 children at Fulwood Nursery who have not been taken away with no warning and are having to find a new place to settle.
"We are having to take time off work at short notice to find somewhere new for our son."
Parents have turned to social media to vent their anger at the closure.
Hannah Read said the closure was a 'massive shame and upheaval' and she had to rush to find an alternative nursery for her son.
Stephanie Leann Gowans added: "The staff have been given as little notice as parents. Horrendous."
A notice on the door at Fulwood Nursery says: "It is with deep regret that the nursery has decided to close with immediate effect as of today - February 2 - this is purely down to financial reasons.
"No child care fees will be issued for February.
"The owners and staff have greatly appreciated your support over the last six years.
"We apologise for any inconvenience this may cause. Many thanks Fulwood Nursery."
Nursery bosses did not respond to requests for comment.