Parents who send children to Clockwork Learning Center in Southbury said the daycare owner sent them a letter to let them know this week would be the center's last and now they are trying to figure out what to do next week.
Holly Sullivan, whose 2-year-old daughter is one of 20 children who attend the center, said they love the center and the staff and cannot believe it is all coming to an end.
"Absolute panic. I'm a single-working parent, so I need daycare for Monday," Sullivan said. "This is a big shock for everybody, and it's a true hardship for these families."
David Lyme, the president and CEO of Clockwork Learning, wrote in part, that enrollment has been down for the past year, costs have increased and it finally caught up to them.
“We have tried very hard to prevent this from happening but the business is in a position that is totally unsustainable and can no longer exist," the statement also says.
Sullivan said the staff was notified that there were no funds to pay them.
A staff member said the owner told them he doesn't know if he'll be able to pay them for October, and several other parents spoke to NBC Connecticut off camera and said they've been told there is no money to give them refunds but that they'll all eventually be paid back.
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"Many families have paid through the end of October and put down deposits," Sullivan said.
Sullivan said despite the uncertainty of payment, the staff is still working through today to take care of the kids.
"God bless them for being here because it's allowing us to make arrangements elsewhere, to get to work, do what we have to do," Sullivan said.
Lyme told NBC Connecticut that the business became unsustainable due to low enrollment in the last year.
"We have tried to make this as easy as possible for everyone but it’s been very hard and is difficult when young children need to be uprooted, I just wish the circumstances where different," Lyme said.
Lyme also said the building's landlords gave him a final date to vacate the property.
"I have never said that the parents would not be refunded there money," Lyme said. "I have been emailing parents to notify them that they certainly will receive any money due, and this will need to be paid over a period of time as the company does not have any money."
Parents and staff said they've already reached out to state agencies for help.
