Christchurch-based My After-School Headquarters (Mash) provides programmes for primary school pupils in the South Island, including Dunedin.
But the ODT understands it has withdrawn its services from Dunedin and may be quitting some of its Christchurch services.
University of Otago student Hannah Westaway, who worked part-time for Mash, said she had received an email this week informing her Mash would not be employing her or any other Dunedin workers from today.
"But apart from that, there’s been no communication.
"I’ve tried to get in touch with Mash about what’s going on because I haven’t been given a reason ... but I can’t reach them.
She had been working for Mash since July.
"I didn’t get my first pay check, and no-one answered my calls, and I eventually got it two weeks’ late.
"It has been very stressful.
"I really hope whoever takes over the Mash sites does better — the parents, pupils, staff and schools deserve that."
This is not the first complaint the ODT has received about Mash.
Green Island School principal Aaron Warrington said the school had decided to terminate its contract with Mash after experiencing "a whole range of issues and problems" and he "wouldn’t send [his own] children to it".
Wakari School had to fill in for Mash after the company failed to provide the contracted services, and the school has since said it had found a new provider.
Government agency Te Kāhui Kāhu, which provides accreditation to Mash, has confirmed it was "responding to three complaints about not delivering programmes, parents being unable to access refunds for cancelled programmes and adult-child ratios".
The Otago Daily Times has obtained an email sent to Mash staff by managing director Craig Fortune confirming the closure of its Dunedin operations.
"Most of you will also be aware that there have been some issue with pay over the past two pay periods.
"This unfortunately is a result of the cashflow challenges the companies [sic] has been facing for some time now, and the major reason for the position we are now in."
Mr Fortune in the email said he was working "extremely hard" with external professionals and he would do everything within his power, including selling his own vehicle, "to ensure all staff are paid in full".
"I understand you are all upset, angry and extremely stressed and I sincerely apologise being the cause of all this."
He said he was working with a "large national provider" to provide not only continuity of care for the children, but also employment opportunities for affected staff.
On Tuesday, the Otago Daily Times emailed Mr Fortune asking him a range of questions, including about the future of the business, and how many staff it employed, as well as asking him to respond to comment from Dunedin schools.
He had not responded to the email nor to repeated calls by deadline yesterday.
