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Toronto-area parents out thousands after daycare shut down amid COVID-19
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Lifestyle


TORONTO-AREA PARENTS OUT THOUSANDS AFTER DAYCARE SHUT DOWN AMID COVID-19
CLOSURES

By Meghan Collie Global News
Posted May 5, 2020 6:00 am
Updated May 5, 2020 1:49 pm
10 min read

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2:12 Coronavirus outbreak: Toronto-area parents out thousands after daycare goes
bankrupt amid COVID-19 closures
Video will begin after these messages...
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Some parents who had kids at a Toronto-area Jewish day school want their money
back. They pre-paid their tuition before the province halted such payments. As
Albert Delitala explains, it's unclear if they'll see any of that money again –
May 4, 2020
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Editor’s note: The headline for this story has been updated to clarify the
daycare’s ongoing bankruptcy process.

When the coronavirus pandemic first closed Ontario schools and daycare centres,
Robin Mandel-Buchalter wasn’t very concerned about securing refunds from her
daughter’s daycare.

The Toronto mom was told that First Foundations Children’s Academy (FFCA) —
which had three locations across the Greater Toronto Area — would offer daily
video call sessions in lieu of in-person classes. She understood teachers still
needed to be paid for their time.

Mandel-Buchalter said she paid roughly $4,500 in summer 2019 for daycare in
March, April, May and half of June 2020.

However, on April 10, Ontario Premier Doug Ford and his government ordered
child-care centres to stop collecting payments from parents while facilities
remained closed due to the coronavirus pandemic.

Story continues below advertisement


READ MORE: Ontario orders closed child-care centres to stop collecting payments,
protects spaces

“COVID-19 has imposed significant financial pressure on working parents,”
Education Minister Stephen Lecce said in a statement. “We need to support our
parents who may be facing reduced income or layoffs during the COVID-19
outbreak.”

At this point, Mandel-Buchalter and several other parents told Global News they
asked FFCA director Alisa Daly to provide refunds they believed they were
entitled to under the provincial emergency order, but Daly did not comply.

On April 30, Daly issued a new statement to all the families of FFCA. In it, she
claims the corporations that operated FFCA had declared bankruptcy.

1:44 Ontario order prevents daycare centres from charging parents during
mandatory closures

“Due to FFCA’s financial condition, exacerbated by the COVID-19 pandemic, the
private corporations that owned and operated FFCA have declared bankruptcy,”
read the statement.

Story continues below advertisement


“This means that effective immediately, FFCA will permanently terminate all
three licenses under the Ministry of Education. In addition, we will not have
the funds to return prepaid 2019-20 tuitions. The Ministry of Education is aware
of this situation.”

The statement also says FFCA will reopen in September 2020 as a “newly created
not-for-profit school” affiliated with Beth Sholom Synagogue under the name Beth
Sholom’s First Foundations Community Preschool.

Overseen by an “independent board of directors,” Daly will remain on as the
executive director, says the statement, and parents will still be required to
pay tuition.


WEEKS OF UNANSWERED QUESTIONS

It all started on March 31, when Ontario’s government extended closures of all
public schools, private schools and child-care centres “until at least May 1st.”

In response, on April 3, Daly issued a letter to all parents in which she
cancelled virtual programming and laid off all FFCA staff “temporarily.” She
also announced that the daycare “does not have the cash to pay refunds.”

This shocked Mandel-Buchalter and several other parents who spoke with Global
News, all of whom were dismayed that they would not be receiving refunds for
care not provided due to coronavirus-related closures.

0:34 Coronavirus outbreak: Ontario private schools, daycare centres to remain
closed as per emergency order

In the letter, obtained by Global News, Daly admitted the daycare was struggling
financially prior to the COVID-19 outbreak. She said opening two new FFCA
locations — one in Cedarvale in November 2016 and another in Armour Heights in
July 2018 — proved to be “too fast” for the organization to sustain.

Story continues below advertisement


“I subsequently learned from our new finance director that we had grown too
fast, funded too many renovations, had too much program development and that
Armour Heights had more challenges than we expected despite very strong support
from our partner synagogue, Adath Israel,” Daly said in the letter.

> “I also learned that in the spring of 2020, we would run out of money.”
> 
> Tweet This Click to share quote on Twitter: "I also learned that in the spring
> of 2020, we would run out of money."

With help from a “broader group of advisers,” Daly said in the letter the
daycare had previously decided to convert FFCA into a non-profit organization —
but then the COVID-19 outbreak hit.

READ MORE: Ontario school closure extended to May 31


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“While this may serve as little comfort, I can tell you that, if necessary, and
if FFCA has to permanently close, I will personally borrow money to return to
each family what I can,” read the letter.

“As the leader of this organization, I hold myself accountable.”

Global News spoke to Daly, and she said parents like Mandel-Buchalter are in the
“vast minority and don’t represent how (the community) feels.”

“FFCA was a growing Jewish preschool, with a progressive educational program and
diverse staff of dedicated professionals. Unfortunately, like many small
businesses, it grew too fast and simply could not withstand the impacts of
COVID-19,” Daly said in the email to Global News.

Story continues below advertisement


Daly says she “deeply regrets” not being able to offer parents refunds on
prepaid tuition but is “humbled” by the support of school families and the
community.

View image in full screen

Robin Mandel-Buchalter and her family at their home.

“While I deeply regret that we cannot refund prepaid tuition, I am humbled by
the incredible support of so many school families and my community, and look
forward to continuing FFCA’s mission as a new not-for-profit school affiliated
with Beth Sholom Synagogue, a cornerstone of Toronto’s Jewish community,” Daly
said.

Mandel-Buchalter says the letter from Daly amid the COVID-19 outbreak was the
first time she had heard about FFCA’s financial troubles.

On April 20, Mandel-Buchalter says she filed a formal complaint to the Ministry
of Education. She says the ministry told her that it would investigate the
situation at FFCA within five business days.

Story continues below advertisement


READ MORE: Child-care advocates say providers need pandemic relief from Ford
government

By April 28, Mandel-Buchalter says she was told that if she wasn’t contacted by
Daly regarding refunds within 48 hours, she was to contact the ministry again.

“If (there was) no answer, I (was) to forward my attempt to the ministry and
they will then ‘enforce the law,'” Mandel-Buchalter said.

Mandel-Buchalter says Daly did not respond by the morning of April 30, so she
notified the ministry. On the same day, Daly made the announcement that FFCA had
declared bankruptcy and it would reopen in the fall as a not-for-profit
organization.

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LOSS OF FUNDS CAUSING ‘MANY SLEEPLESS NIGHTS’

That FFCA will reopen as a not-for-profit doesn’t surprise Mandel-Buchalter, as
Daly had mentioned her intentions to do so in earlier correspondence, but she
was shocked to hear parents had no further recourse.

“What I don’t understand is how the assets can transfer from one school to
another. If she’s declaring bankruptcy, shouldn’t the assets from the first
business be sold so creditors can recoup something?” Mandel-Buchalter said.

She says she’s also upset that the Ministry of Education would allow Daly to
serve as executive director of the new school after this situation.

Story continues below advertisement

2:01 Coronavirus: Daycare centres at risk over rent

“How is the new school able to get licensed with her tainted name on the record?
How can the ministry trust her with another licence?” she said.

Mandel-Buchalter’s daughter moves on to junior kindergarten in the fall, so she
will no longer attend FFCA, but she’s worried about the same thing happening to
other families.

“It’s not impacting our financial situation, but there are other families where
parents (have been) laid off. They could really have benefited from the refund.
This is not a remedy,” she said.

READ MORE: ‘Finding light’ — High school gay-straight alliances go virtual amid
coronavirus

Michael Budd, another FFCA parent, says he is also missing roughly $5,075 for
the care not provided during the COVID-19 outbreak — assuming the daycare
remains closed until June 11, which was slated to be the last day of the FFCA
school year.

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Due to extenuating circumstances, he has been his family’s sole provider for the
last four years, and he says this has certainly had an “impact.”

Not getting a refund has caused him “many sleepless nights.”

4:26 How to homeschool your kids during the COVID-19 pandemic

“I don’t understand how the ministry can now allow another business to operate …
with her as the executive director,” Budd said.

Steve, whose name has been changed to protect his privacy, has a two-year-old
who attends FFCA. He’s most upset that this situation has cast the daycare in a
negative light because his child loves going there.

“We’re not asking for anyone’s sympathy. This is about receiving the service we
paid for,” he told Global News.

READ MORE: Quebec parents fear sending kids back to school, concept of ‘herd
immunity’

He says he’s missing roughly $8,000 because, in addition to tuition for April to
June 2020, he paid a $500 deposit for summer camp and a $1,500 deposit for next
year.

Story continues below advertisement


Daly has offered to put the deposits towards next year, but Steve says he’s also
been asked to submit two more deposits worth $1,500 each on July 1 and Aug. 1 to
hold his child’s spot for the 2020-21 school year.

1:42 Coronavirus outbreak: Ontario expands list of those eligible for emergency
child care

Steve and his wife aren’t sure they’re comfortable doing so due to their past
experience with FFCA.

“We are happy that Beth Sholom will have a daycare but are reconsidering sending
(our child) to FFCA because (Daly) has been given a prominent leadership role,”
Steve said.


NO RECOURSE AT THIS TIME

Unfortunately, the province’s emergency order does not include any information
about what happens if a child-care centre declares bankruptcy.

When asked about the investigation into FFCA, the Ministry of Education declined
to discuss whether it received a complaint about FFCA or whether it is
conducting an investigation.

Story continues below advertisement


READ MORE: Canadians who didn’t have a job even before coronavirus — What help
can they get?

In an email to Global News, a spokesperson reiterated the details of the
emergency order.

“Effective April 9, all child-care providers are prohibited from charging fees
to parents where care is not being provided and are also prohibited from
penalizing parents,” read the email.

“If fees have been paid in advance by parents, child-care providers should
reimburse parents for any fees paid for the period of time from April 9 and
beyond.”

READ MORE: What should Quebec’s upcoming plan to return to school look like?

The ministry investigates complaints received from the public about licensed
child-care centres, home child-care providers overseen by licensed agencies and
unlicensed child-care providers who may be in violation of this emergency order,
the spokesperson said.

Parents can report complains to the Ministry of Education by calling
1-877-510-5333 or emailing childcare_ontario@ontario.ca.

Budd feels “unsupported” by the provincial government and the Ministry of
Education.

READ MORE: Coronavirus — Parents don’t have to be teachers, but learning doesn’t
have to stop

“The province has failed to support parents adequately,” he said. “Nobody asked
for this, I get that, but you have to be there to support people. When you put
in a policy that (others) have circumvented, what are you doing to do to support
(those who have been wronged)?”

Story continues below advertisement


That parents are out thousands of dollars with no recourse is a “slap in the
face,” said Budd.

“We’re complying with every order… I go out once a week to get groceries. I’m
working 12 hours a day for my employer to support (others) and there’s nothing I
can do. Nobody seems to care to step up.”

Questions about COVID-19? Here are some things you need to know:

Health officials caution against all international travel. Returning travellers
are legally obligated to self-isolate for 14 days, beginning March 26, in case
they develop symptoms and to prevent spreading the virus to others. Some
provinces and territories have also implemented additional recommendations or
enforcement measures to ensure those returning to the area self-isolate.

Symptoms can include fever, cough and difficulty breathing — very similar to a
cold or flu. Some people can develop a more severe illness. People most at risk
of this include older adults and people with severe chronic medical conditions
like heart, lung or kidney disease. If you develop symptoms, contact public
health authorities.

To prevent the virus from spreading, experts recommend frequent handwashing and
coughing into your sleeve. They also recommend minimizing contact with others,
staying home as much as possible and maintaining a distance of two metres from
other people if you go out.

Story continues below advertisement


For full COVID-19 coverage from Global News, click here.



Meghan.Collie@globalnews.ca

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