Christmas this year could be a melancholy holiday for a Hawthorne decorations company.
Rent-A-Christmas LLC declared $218,209 in assets and more than $1.5 million in liabilities in a petition filed on July 29 in U.S. Bankruptcy Court, White Plains.
Owner Judah Parness stated in an affidavit that he believes that Chapter 11 reorganization will enable Rent-A-Christmas to restructure its affairs and come up with a plan “that is in the best interests of its creditors.”
He and his wife, Kristen, established the company in 2016 to design, rent and install Christmas and winter displays. They each owned half of the business, until this year, when Judah became sole owner.
For five years Rent-A-Christmas focused mostly on residential customers and earned modest revenues, the affidavit states. In 2021, business shifted to large-scale commercial projects for airports, shopping centers and municipalities. Revenues increased to more than $1 million.
Two large projects booked in 2023 were expected to make $2.1 million. But a 3-year contract was cancelled early and neither job produced the expected revenues.
Rent-A-Christmas had bought a lot of inventory. Losses from the two big projects reduced cash flow; the business fell behind on vendor payments; and significant debt accrued.
In 2023, Rent-A-Christmas booked $1.2 million. Last year it made $673,429. Up to July 29 this year it had made $370,000.
It leases an office near the Hawthorne Metro-North train station, as well as storage space in Hawthorne and six locations in Connecticut, New Jersey, Tennessee, and Texas. It has no employees.
Unsecured creditors are owed nearly $1.5 million, including $240,000 by the U.S. Small Business Administration, according to bankruptcy records. Secured creditor Pursuit, formerly known as the New York Business Development Corp., claims it is owned $55,750.
Rent-A-Christmas is disputing the secured and unsecured debts.
The business is represented by Eastchester attorneys Dana P. Brescia and Julie C. Curley.
