After a January inspection found the Little Steps Big Steps nursery to be inadequate, a March inspection found there had been no improvement.
The latest report on the nursery, which only opened in 2019, said interactions between staff and pupils remained poor and staff struggled to manage disruptive pupils.
It added: “Staff do not provide a curriculum that is designed to give children the knowledge and skills to support their future learning, including their progression to school.”
Following the latest report inspectors issued an enforcement notice with a deadline of the end of April, for improvements to be carried out, including the management of children’s behaviour, offering a stimulating environment for youngsters and supporting staff in their development.
But the nursery closed on March 31.
The nursery in the Old School House, on Trinity Road, provided early education for children aged 2-4, during term time.
At the time of the first inspection the nursery says it is "extremely disappointed" by the findings and says Covid has caused great disruption but that it is now working closely with Luton Council on an action plan to improve.
But the March report stated: “Despite receiving support from the local authority, staff still require further development opportunities to ensure they are able to support all children's needs, and to perform their roles and responsibilities to a consistently good level. This includes their knowledge of the curriculum, their teaching skills and the management of children's behaviour.”
After the January report a spokesman for the nursery blamed Covid for issues, saying: "As a nursery we are extremely disappointed with the outcome. Being a new nursery and having just opened when Covid started has not helped the nursery in terms of stability, children attendance, parents engagement.
"There has been many disruptions due to Covid with children settling in, attending, their development and parents well-being. Due to Covid we have not had much support from our local authority due to visiting restrictions and also as their staff working from home."