Parents and teachers were blindsided when the owner of a popular early childhood education center in Windsor Terrace abruptly announced its closure, leaving families without child care, staff without jobs and thousands of dollars lost.
Rory’s Room has been an anchor in the community since 2009, offering preschool, daycare and summer camp services. The sudden closure on Oct. 4 left many parents fuming, and at least 15 families say they are owed about $100,000 in tuition refunds.
Windsor Terrace resident Renne Murdock said she thought she had settled her children’s daycare for the year, but was shocked when she received an email from owner Deborah Capone on Oct. 1 stating that Rory’s Room would close in three days.
“I had a hard time believing it, I wondered if it was a scam, some kind of phishing email,” said Murdock, whose children attended the 3-K and 2-K program. “Once I confirmed it was true I was in a real panic. For that next week, I could barely focus on my job, I couldn’t sleep, I mean really I was a huge mess.”
Murdock, who paid a little over $30,000 for her two children upfront in September, said she received a partial refund but is still owed close to $20,000.
Emily Wallace, whose daughter had just started the 3-K program, said she’s owed $6,500. Wallace said she had very little interaction with Capone until she received the email about the center's closure.
“I did not know who she was,” she said. “When we got the email announcing that the school was closing and it was from her I was like is this real, is this a joke, who is Deb?”
Most parents communicated with the program director, Ryan Shaps, not the owner, according to Wallace. Shaps did not respond to requests for comment.
In the email announcing the closure obtained by BK Reader, Capone said enrollment “significantly declined” due to the city's introduction of free universal pre-kindergarten and universal 3-K programs.
However, Greta Feit, a teacher who taught at Rory’s Room for seven years, said her 2023 2-K class and 2024 summer camp group were both fully enrolled. She was on maternity leave when she found out she no longer had a job.
Feit said the previous director of the school had been transparent about the financial difficulties stemming from the pandemic.
“I think it was clear to all of us that we were on a bit of an uphill climb financially, but at least at Rory’s Room there was always full enrollment,” Feit said.
In her email to parents and staff, Capone said she tried to “transfer the program to another operator,” but couldn’t find anyone “willing to take on a non-profitable venture in the current challenging climate.” Capone said she invested “substantial personal funds” and it reached a point where she filed for personal bankruptcy.
Capone sent the following statement when contacted for comment: “Under the advice of counsel, I’ve been asked not to comment further at this time. However, I do want to acknowledge that a story presenting only one side of the events doesn’t provide the complete picture. Every situation has multiple perspectives, and a full understanding can only come from considering all sides.”
In the email sent to parents, Capone said she will provide refunds once she receives her COVID Employee Retention Tax Credit. The ERTC was designed to help small businesses retain employees during the pandemic by refunding up to 70% of paid wages.
Despite the high need for child care across the city, running any small business has its difficulties.
Rory’s Room was one of three childcare centers Capone operated under the Olive Tree House Group LLC she started in 2007, all of which have since closed their doors. In a 2007 article, Capone described how hard it was to jump through bureaucratic hoops, which also noted how one center opened despite the lack of proper permits.
Rachel Maso, whose daughter was about to start her first year at Rory’s Room when the closure was announced, said Capone didn’t seem like an ill-intentioned person.
“I think that she’s a person who, at the very least, was very irresponsible with money,” Maso said. “I don’t think she was trying to steal our money. At the same time when someone is running a business, they have a responsibility to anyone but especially children, that they would make more responsible choices.”
