Bankrupt Family Service Moncton owes $500K

Family Service Moncton Inc. owes more than $500,000, according to court documents filed by the non-profit agency when it declared bankruptcy earlier this month.

The agency, which offered counselling for families and workers, hasdebts ranging from$142owed to a local flower shop to a $149,000bill fromthe Department of Health, the documents show.

Family Service Moncton officials declined to comment, but the agency is affiliated with the national group Family Service Canada.

Valerie Bobick, a board member who runs the agency in Halifax,told CBC News she also had difficulty getting answers from the Moncton operation, whichemployed 25 people.

"I tend to think that they're as much taken aback by what has happened as is everybody else," said Bobick.

"We understand that there were some cash-flow problems over a long period of time."

The bankruptcy has created uncertainty at other Family Service branches in the Maritimes, she said.

"You know what, that's where it's really difficult, you know. We've gotten calls here in Halifax, 'Hey is it you guys that are closing?' because the name is synonymous across the country," she said.

Bobick said she, the trustee and the Department of Health are all working to make sure the estimated 2,000 Moncton clients, who still need helpwill get it throughanother agency and that their files remain confidential.

Peace Centre seeks new tenant

Meanwhile, the Community Peace Centre, where Family Service Moncton rented space, is trying to find a new tenant, said Jim Jones, a board member.

"Our sustainable business model is based upon renting the building and the tenants paying rent, so anytime a tenant of the size of Family Service Moncton closes its doors, yes, it will have some effect on the Peace Centre, and that's what we're working through now," he said.

Family Service Moncton was one of six organizations that rent space in the facility.

The Peace Centre was aware the agency had beenhaving financial problems, but did not realize the extent, Jones said.

In December, Family Service Moncton announced plans to cancel its subsidized counselling program on Jan. 1 after losing nearly $100,000 in funding from the United Way.