The private daycare in Södermalm was visited in late February by inspectors from the education authority who noticed a number of serious flaws reported the Mitt i Stockholm newspaper.
Among the litany of issues they discovered was that children didn't have their diapers changed, were left alone on high-chairs at tables and, on some occasions, weren't comforted when they were crying.
The nursery has had issues in the past regarding the competence of management. Parents had also expressed their concerns with a number pulling their children out altogether.
However, the decision to close the daycare was made after a child almost got run over by a car on a routine outing during the inspector's visit. On that occasion the inspector intervened to lift the child up and prevent an accident.
"We view this as a very serious issue which is why we have made the assessment that we've done," Stefan Larsson Lindmark, head of daycare co-ordination with the education administration in Stockholm county, told Sveriges Radio (SR) P4
He added to Mitt i Stockholm; "We always make an assessment of the seriousness of the flaws. It has long been foremost dealing with management failures which didn't present a direct threat to the child's safety and health.
Regarding the decision to close the nursery he said;"It was about an immediate danger to the children which is why we have made the decision to close the daycare."
The education administration stated in their decision that the daycare had an exceptionally high turnover of children. In 2014 alone, 13 children started at the nursery but eight kids were taken out by their parents.
At present the children from the daycare will be placed into a temporary school and in the autumn go to a new nursery.
Larsson Lindmark added to SR P4 that it was only the second time a daycare in the capital had been closed due to these circumstances.
"It's important that we have this option when there are flaws like this. The fact that it happens so seldom is a good testament to the daycare resources in Stockholm."