Geritol Follies faces bankruptcy
Confusion over how much board knew about finances
Hamilton’s famed Geritol Follies faces bankruptcy unless the city agrees to an emergency debt relief request for the storied seniors’ troupe.
The charity group of 60-plus variety show entertainers first danced onto the Hamilton arts scene in 1974 and at one stage was profitable enough to donate $100,000 to student bursaries.
But on Monday, city councillors will consider a staff recommendation to grant the Follies almost $50,000 to cover outstanding money owed to HECFI.
That amount owed to Hamilton’s entertainment agency reflects the cost of staging shows at Hamilton Place.
The group moved to Mohawk College’s McIntyre Centre for the Performing Arts in late 2011.
That’s about half the total debt “shocked” board members learned the troupe was carrying at a meeting last year, vice-president Carol Van Caulart said Friday.
“We had no idea,” she said of the $100,000-plus debt. “I know, that sounds like a crock … But the (financial) information was always presented to us in such a way that it seemed all would be well, or could be.”
A letter from the Follies to council said Follies board members were “deceived” about the state of
Things just seemed to slip by … We’re looking at everything more rigorously now.
JOE CARSCADDEN,
BOARD PRESIDENT
the long-running charity’s finances. But in interviews Friday, board members backed away from that language.
“I wouldn’t say anything that strong,” said board president Joe Carscadden. “Things just seemed to slip by … We’re looking at everything more rigorously now.”
Van Caulart said she felt financial reports presented to the board depended on “if-come,” or potential future income that was “based more on hope than reality.”
Longtime producer and director Carl Horton — who told the board to end his job last spring as a cost-saving measure — said members were never misled by staff.
“We had perpetual deficits going back years,” he said, noting the 2008 recession really hit the group’s bottom line. “And when you hit two or three bad shows, things add up awfully quickly.”
Horton added several new members joined the board during or after 2011 and it’s possible they weren’t as familiar with the group’s worsening financial outlook.
Van Caulart said the Follies have battled “horrendous financial distress” by slashing costs, including axing salaried staff, abandoning an office and telephone service.
A new director, Donna Dunn-Albert, helped the 60-strong group of volunteer performers put on a sold-out Christmas variety show, she said. That helped the group pay off some of its debt, making HECFI the largest re- maining creditor.
“Having this help from the city would be huge,” Van Caulart said. “Without, I’m not sure exactly what we’ll do yet.”
Councillor Sam Merulla, who has been advising the group for months, said he supports the onetime debt forgiveness. “The Follies have some significance in Hamilton from a historical perspective, especially from a social perspective for our seniors,” he said.
The staff report recommends the grant, noting the debt is likely unrecoverable if the Follies dissolve, meaning the city would eat the cost as part of HECFI’s operating loss.