Two small businesses are suing the Multicultural Association of Nova Scotia, accusing it of cancelling this year's festival without reimbursing the vendors for fees they paid.

In documents filed Wednesday in small claims court in Halifax, the businesses allege the association cashed their cheques, which were meant to secure stall space to sell their goods, but has had no contact since.

"Everything disappeared. It's just dead," vendor Ingrid Dunsworth, who owns The Cake Lady, said in an interview. "It's a very sad story for our community, for Halifax, for international people."

Outstanding debts

The popular 32-year-old festival featured music, dance and food by Nova Scotians with roots around the globe, but in May an association board member told CBC the festival would not be going ahead as scheduled on June 17.

That came after the group was court-ordered to pay more than $26,500 in outstanding debts, dating back to the 2014 festival.

Now the owners of Noblemay Catering Services and The Cake Lady have asked small claims court to force the association to pay back festival fees that total $3,322. They're also seeking legal costs.

"I can survive this, but it's hard. I mean, you work hard — and it's a lot of money to lose," Dunsworth said.

Ingrid Dunsworth, owner of the Cake Lady, thought she would be selling her baked goods in June at the festival. (Angela MacIvor/CBC)

'Ignoring us'

She said she hasn't heard anything from the association since she dropped off her cheque months ago at the Mariginal Road office, which has since closed.

"Everyone is ignoring us, and it's not the right way to do business and treat vendors," she said.

Both Dunsworth and Jonathan Roberts, co-owner of Noblemay, had their cheques cashed in February, according to the notice of claim filed with court June 22.

Only when CBC contacted the vendors in May did they find out the festival was cancelled.

The festival normally ran one weekend in June. (CBC)

Public funding scaled back

Attempts to reach the Multicultural Association of Nova Scotia this week were unsuccessful, as the phone number and email addresses posted online were out of service. Executive director Ifty Illyas did not reply to requests for an interview.

The association received more than $80,000 of government funding in the 2014-2015 fiscal year, according to Canada Revenue Agency charitable filings.

Since then, public funding has been scaled back in light of the financial struggles.

Signs of revival

Despite this, there are indications the association is still active.

The province is funding several staff members through the Job Creation Partnership, as it has for at least five years, Labour Department spokesman Andrew Preeper said in an email.

"The individuals hired by MANS have been hired each year to assist with the planning and preparation of the festival," he said.

'A close eye'

As of May 17, the three staff had been paid $5,871 directly by the province, he said. The association had been paid $6,320 through that program to help with overhead costs associated with festival planning.

"We have been keeping a close eye on the situation to ensure the three participants are receiving an appropriate experience," Preeper said, adding the association is in compliance with the rules.

He said the association has a new office, but would not reveal the location to CBC.

The association's office was packed up in May. (Angela MacIvor/CBC)

Police report filed

No new date for a festival has been announced publicly — leaving vendors wondering what's happening with their money.

"We are all very sad," Dunsworth said. "We would love to have a new beginning for the multicultural festival on a different base and [with] a new structure."

Roberts also has filed a report with Halifax Regional Police, the notice of claim said. He mailed a letter to the office and to all board members, and found most quit the association's board at least a year ago, the statement says.