Work reference

My old boss is a reference for me on my resume. I have recently been in financial hardship, I became a single parent and I had to move away which meant moving away from my job. I've been applying for everything in the new area but there's actually not much going here despite the big jobs boom that's supposed to be happening. I think because this is a big town and I've just left the city. I have been applying for everything even things I wouldn't normally do because we are in survival mode right now I'm struggling with food, car and rent and I'm currently behind with the car repayments because I've had weeks where I've just not had enough money for everything. I've had the power cut off already. I use free wifi if my phone data runs out. It's really depressing. One job I applied for was in a sex shop. They must have rang my old boss for a reference. I didn't hear back from the shop but when I saw my old boss again (our kids are friends) she laughed at me and said, "didn't you apply to work in a sex shop?". I really didn't know how to respond for starters she said it in front of our kids and I also hadn't told anyone so I felt really uncomfortable about her saying that. I also felt like I was being mocked like I was applying for these jobs out of desperation and a job is a job, yet she thought it was funny. I had to leave because I couldn't hold back the tears. I have nobody else to use as a reference I don't want her knowing what kind of jobs I'm applying for. Has anyone been through this before, can you just put the workplace down and not the person?