Parents arrived at one school this morning to find no one to look after their children, while others were contemplating dropping working hours or study and worried they would not get refunds for prepaid care.
The news comes after the Otago Daily Times reported today it understood Mash was pulling out of its Dunedin operatoins.
In an email to My After-School Headquarters (Mash) and CASPA staff on Thursday obtained by RNZ, owner Craig Fortune told employees the programmes would permanently close at 6pm today.
"Most of you will also be aware that there have been some issues with pay over the past two pay periods. This unfortunately is a result of the cashflow challenges the companies have been facing for some time now, and the major reason for the position we are now in," he wrote.
"I would like to assure you that I am working extremely hard with external professionals and will do everything within my power, including selling my personal vehicle to ensure all staff are paid in full."
Christchurch mother Amy, who did not want to use her surname, said she arrived at her son's school to find no CASPA staff present this morning.
"There were two other parents there as well that dropped their kids off and they were walking back out the gate because the teachers weren't in a position to be able to look after the kids, which is fair enough. They're not there to look after them at that time."
Although CASPA's closure had not come as a total surprise, Amy said she was trying to make arrangements for a friend to take care of her son before school.
"It's been a bit of a sinking ship for ages, in all honesty, but I was a bit panicky, thinking about what the hell we're going to do going forward.
"My main concern is that there are a lot of parents out there who have prepaid for care that won't likely get a refund, us included. I know some parents who have prepaid for school holidays that have $800 in credit. I'll be surprised if they get that back."
Another mother, who also did not want to be named, said she was about $950 in credit for MASH care for her three children so she could study.
"I have to talk to my tutors for study, have a look at a study plan and either drop out until we can find a new care provider, or somehow make it work," she said. "At this stage I'm probably looking at pulling out of my study, which I'm two years in."
Another mother said she took her son to before-school care on Thursday morning, but the CASPA staff member did not know if the programme was still running and revealed she had not been paid.
While the woman was relieved her school had quickly sourced another after-school programme starting on Monday, she was concerned about dropping hours at work to be with her son before school.
"It still means no before-school care, so pretty much I'm just having to decrease my hours," she said.
Parents told RNZ communication from the companies had been "hopeless" and they had not been able to reach staff at head office, after receiving a short two-line message informing them of the programmes' closure.
In his email to staff, Fortune apologised and pledged to find them new jobs.
"I understand that you are all upset, angry and extremely stressed and I sincerely apologise for being the cause of this. In terms of employment opportunities, I am working with a large national provider to provide not only continuity of care for the children but also employment opportunities for you all. To this end, I would like to ask your permission to pass on your contact details to this provider."
Ministry of Social Development (MSD) spokeswoman Rebecca Brew-Harper said it was unable to provide an update on the situation because of "commercial confidentiality".
"As a private business, the programme providers are the best people to respond to questions about their operations," she said in a statement.
"MSD provides a subsidy to a number of parents, among those using these services. The subsidy may be available to those families who meet the criteria outlined on our website: Out of School Care and Recreation (OSCAR) Subsidy - Work and Income.
"The Out of School Care and Recreation (OSCAR) Subsidy is a payment which helps eligible families with the costs of before and after school care for up to 20 hours a week, and school holiday programmes for up to 50 hours a week.
"MSD also supports some OSCAR providers with grants to contribute to operational costs to support provision of before school, after school and holiday programme childcare availability for working parents."
RNZ has contacted Fortune for comment.
