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SCRANTON – The deal transferring St. Michael’s School to a new owner has been finalized, the Diocese of Scranton announced in a statement, but other than the school’s executive director, the fate of 136 employees could not be determined Friday.

The statement noted that Andrew Varzaly, executive director of St. Michael’s since 1998, was appointed vice president of operations at the facility under the new owner, EIHAB Human Services, Inc., based in Springfield Gardens, N.Y. EIHAB is an acronym for “Empower-Instruct-Habilitate-Assist-Better.

The school, formed in 1916 as an orphanage, had morphed into a center providing care and treatment of behavioral, emotional and abuse problems and serving primary, secondary and special education students from throughout the state. It was not uncommon to find one or two students from area public school districts sent there – at district expense – for specialized treatment.

But after a review of the operation, the diocese decided in 2007 that the scope of services had grown beyond its capacity, and started looking for a new owner.

The deal with EIHAB has been in the works for months. In June, the diocese gave legal notice to the state Department of Labor and Industry that 136 people would be laid off from the main school near Tunkhannock and outlying group homes.

While the diocese has expected at least some of those employees to be rehired by the new owners, the statement issued on the final transfer of ownership gave no numbers, referring questions to Fatma Abboud, chief operating officer at EIHAB. Abboud was unavailable for comment Friday afternoon.

The diocese statement notes the school will remain at the same location but was renamed EIHAB Human Services Inc. and given a new mailing address: 12 State Route 92 South, Tunkhannock, PA 18657.