A dual-language preschool in downtown Salem has closed indefinitely, leaving a dozen families searching for child care and five employees without jobs. The closure of Amiguitos Family and Child Care Center follows months of financial instability, including allegations of wage theft and internal accusations of embezzlement.
The nonprofit operating the school, the Oregon Childcare Coalition, is now at the center of a dispute involving bounced paychecks, state wage claims, and conflicting stories from its leadership about the source of the financial crisis.
Key Takeaways
- Amiguitos Family and Child Care Center in Salem closed suddenly on October 17, 2025.
- The closure impacts approximately 12 families and resulted in five staff members losing their jobs.
- The nonprofit's director, Ramiro “RJ” Navarro, has resigned amid accusations of financial mismanagement and wage theft.
- Navarro attributes the financial problems to employee embezzlement, while former staff and a board member cite a pattern of bounced checks and mismanagement.
- The preschool owes approximately $25,000 in back rent to its landlord, Saint Mark Lutheran Church.
An Abrupt Closure Leaves Families Scrambling
Parents of children at Amiguitos Family and Child Care Center received unexpected news on the evening of Thursday, October 16. A message sent through a school communication app informed them the preschool would be closed the next day. By Sunday, the situation had escalated. A second message announced the closure was indefinite, citing a “significant theft” that left the organization unable to meet its financial obligations.
The school, located at 790 Marion St. N.E., had been in operation for just over a year, opening its doors in October 2024. It served around a dozen children, with plans to enroll eight more soon. The sudden shutdown has forced families into the difficult position of finding alternative child care with little to no notice.
The decision to close was made by Ramiro “RJ” Navarro, the president and interim executive director of the Oregon Childcare Coalition. However, Shanna Aldis, the nonprofit's vice president, stated that Navarro acted alone, without consulting the rest of the board. “He’s basically doing everything on his own. No vote, no nothing,” Aldis said.
A Pattern of Financial Distress
The indefinite closure is the culmination of long-simmering financial issues. Several former employees have come forward with claims of unpaid wages and bounced paychecks, with some issues dating back to just months after the preschool opened.
Wage Claims and Bounced Checks
Claudia Estrada, the former preschool director, filed a wage claim with the Oregon Bureau of Labor and Industries (BOLI) on December 27, 2024. She stated she was owed more than $5,000, a situation that left her financially strained just before Christmas. Her claim remains open.
More recently, another employee, Alesha Forsythe, received a paycheck for nearly $2,000 on October 4 that later bounced. She subsequently filed her own wage claim with BOLI and a report with the Salem Police Department on October 14. Forsythe and her family held a protest outside the preschool on October 15, holding signs alleging theft and demanding staff be paid.
“It’s not just about the money, it’s about the principle,” Forsythe said during the protest. “We worked hard for our pay, and we deserve to be compensated.”
Navarro acknowledged that some checks had bounced. While initially stating there were three instances since September, he later conceded there could have been as many as eight, as claimed by board member Shanna Aldis. He confirmed that Forsythe had since received a replacement check that cleared.
Financial Snapshot
- $25,000: Approximate amount of unpaid rent owed to Saint Mark Lutheran Church.
- $5,000+: Amount former director Claudia Estrada claims she is owed in a BOLI wage claim.
- ~$2,000: Value of a bounced paycheck issued to employee Alesha Forsythe.
- 8: The potential number of bounced paychecks issued to employees, according to a board member.
Conflicting Explanations for the Crisis
The reasons behind the preschool's financial collapse are contested. Navarro, who has announced his resignation, blames the issues on internal theft and bureaucratic delays.
Allegations of Embezzlement
Navarro claims he discovered an employee was embezzling funds in the spring of 2025. He said he attempted to handle the matter internally before placing the employee on administrative leave on October 13 and reporting the alleged theft to Salem police on October 17. He also cited late state payments for child care subsidies as a contributing factor, though this has been disputed.
Kate Gonsalves, a spokesperson for the Department of Early Learning and Care, which manages the subsidy program, stated the department has consistently issued payments to Amiguitos within three to four days of receiving invoices. The school’s last payment of nearly $3,500 was processed on October 8.
Who is RJ Navarro?
Ramiro “RJ” Navarro is a recognized figure in the Salem area. In addition to his role at the Oregon Childcare Coalition, he serves on the board for the Salem Area Mass Transit District (Cherriots) and was a candidate for the Oregon House of Representatives in 2022. He has stated that his work with the preschool was unpaid. The Cherriots board is aware of the situation and is consulting with legal counsel.
Accusations of Mismanagement
However, employees and board member Shanna Aldis paint a different picture, one of consistent financial mismanagement. Aldis believes Navarro, who had sole oversight of the nonprofit's finances and check-signing authority, is responsible for the crisis. The wage claim filed by Claudia Estrada in 2024, long before the alleged embezzlement was reported, suggests financial problems were present early on.
In addition to payroll issues, the nonprofit is significantly behind on rent. Navarro confirmed that the organization owes approximately $25,000 to its landlord, Saint Mark Lutheran Church, and that a payment plan had been arranged.
An Uncertain Future
With Navarro’s departure, the future of Amiguitos Family and Child Care Center is unknown. Two board members, including Aldis, will remain, but it is unclear if they have the resources or the will to reopen the preschool. The immediate priority for many is resolving the outstanding wage claims and helping families navigate the disruption.
For Navarro, the resignation brings a sense of finality. “I was able to sleep for the first time in a while,” he said, expressing relief after a period of intense pressure. Meanwhile, the community is left to deal with the fallout: families without child care, staff without paychecks, and a nonprofit in disarray.