Local Nonprofit CANDLE, Mired In Debt, Seeks Relief In Chapter 11 Bankruptcy

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Nonprofit Served Rockland’s Youth Since 1982; Faced Eviction And Ultimately Bankruptcy

By Tina Traster

A longstanding social services organization that stretched its mission with clinical support in 2023 is at the end of the road.

Community Awareness Network for a Drug-free Life and Environment, (CANDLE), founded in 1982 to prevent substance abuse and violence, has filed a petition for bankruptcy in the United States Bankruptcy Court for the Southern District of New York. The petition, filed under Chapter 11, implies the organization hopes to re-organize and manage an unmanageable debt burden, but insiders say CANDLE is winding down, not reorganizing.

In a letter penned by Scott R. Eidman, the organization’s board president, to social service partners, he wrote: “On behalf of the Board of Directors of Community Awareness Network for a Drug-Free Life and Environment (CANDLE), I am writing to formally confirm that the organization will cease operations effective May 1, 2025.  Some minimal runoff of certain prevention programs at our schools may continue into early June as part of our closing out of these schools.”

Eidman continued “We are very proud of the programs we have brought to our community over the past 40 years.  iCARE, iMATTER, Kinder Connection/Kids Connection/Teen Connection, Too Good for Drugs and Violence and Varsity Athletes Against Substance Abuse (VAASA), just to name a few. They have had a positive impact upon our Rockland Youth. Our Common Threads program has been an extremely valuable support for some of our youth, providing them with a crucial, safe space to explore who they are and “just be”.  We are very much hoping that other organizations will continue to carry on the essence of these programs.”

CANDLE traditionally helped prevent substance abuse and violence among youth by providing prevention education and resistance strategies to youth and their adult allies, and support programs for young people at risk. CANDLE also provided training for youth-serving professionals, parents, and young people on topics ranging from prevention of drug use, risky behaviors and violence among youth.

However, in 2022, the organization, run by Executive Director Laurel Salmon, a therapist, branched out to offer clinical services. Salmon is a licensed marriage and family therapist, according to her LinkedIn page. Prior to her role as Executive Director for CANDLE, Salmon was senior director of Therapeutic & Support Services for the Center For Safety & Change, Inc.

Insiders say the protracted walk-up to establishing an outpatient mental health clinic was more complex and resource intensive than had been anticipated. While waiting for its license and establishing contracts with health providers, the organization inadvertently underestimated costs, which absorbed surplus funds. The organization continued to incur debt, which exceeded revenue, insiders said.

Eidman told service providers that regarding the “Children’s Mental Health Clinic, we have arranged for VCS to expand and pick up the majority of our patients and provide a seamless continuity of care. Some of our clinical staff have been hired as well by VCS.”

CANDLE has less than $30,000 in assets, but owes more than $400,000, according to the bankruptcy filing.

Chapter 11 bankruptcy is a form of bankruptcy designed for reorganization, not liquidation. It allows businesses and individuals to create a plan to repay creditors over time while continuing their operations. However, by all accounts, CANDLE will dissolve, not reorganize.

Aside from a long list of noted creditors, CANDLE also owes an “unknown” amount of money to Florida-based “merchant cash advance” company Greenbox Capital. Merchant cash advance (MCA) companies provide funding to struggling businesses by providing cash now, payable through daily or weekly withdrawals from a company’s bank account until the obligation, which is larger than the amount advanced, is paid in full. It appears from off-the-record interviews that many board members were unaware that a merchant cash advance loan had been secured.

MCAs generally fund less than they collect. In New York, many MCAs have been the subject of recent lawsuits by the New York State Attorney General’s Office based on fraud and usury. Whether the Merchant Cash Advances secured by CANDLE caused its financial downfall is unknown, but Salmon is a co-debtor, along with CANDLE, in its obligations to Greenbox Capital, according to the court filing.

It’s not unusual for financially-struggling nonprofits to borrow from MCAs, however they are risky.

The nonprofit organization recently lost its lease through eviction.

An automatic stay that prevented the landlord from evicting CANDLE from the premises at 120 Main Street in New City was lifted last week by the bankruptcy court, allowing the landlord, JCW Management to reclaim the offices. At the time of the bankruptcy filing, CANDLE owed the landlord more than $48,000.

CANDLE lists multiple individuals as creditors, including 18 priority creditors. Priority creditors are generally entitled to unpaid wages, salaries, and benefits and unpaid contributions to employee benefit plans. CANDLE also lists 12 non-priority creditors, including Good Game Lounge at the Palisades Center, the Stony Point Center, Advantron Computers, AFLAC, J&J Car Service, and several local banks.