Two years ago, business was good at PCR Decorations. So what if margins were thin? the business was doing vibrant sales, enough to cover its costs and pay its debts.

But now, the store's owner, who consented to be interviewed on condition her name was not used, and who, two decades ago, sank her savings into the business, has now put it up for sale, unable to pay her bank, and in danger of losing her insurance

PCR Decorations, a wedding goods and printing store/Internet café at Pavilion Mall in Kingston, is now trying to sell off the stock and equipment in the store - items valued at around $3 million - in a bid to settle bank debts, money owned in rent to Pavilion Mall, and other obligations she cannot meet because of falling income.

Noting that business has fallen precipitously - by as much as 50 per cent - while costs have risen since the middle of 2008, the store owner says that operational costs are now much more than her monthly income, with rent more than $200,000 and electricity costs in the $60,000 region.

Her misfortunes have come with a change in the wedding market. Not only are fewer brides walking up the altar, those who do, are choosing more modest nuptials.

Demand for wedding services has fallen, others in the business remark.

couples forced to economise

A sales representative with Weddings By Norma's in Red Hills Plaza says that very few are asking for full service, which includes bridal consultation, decorations of functions, gowns, tuxedoes, videographers, chair rental, shoes and limousine service.

"Some want decorations alone; some just want to rent a few items," she said.

Across town at Pollyanna Caterers on Stanton Terrace, another wedding planner said weddings are becoming more intimate affairs now that couples are forced to economise.

"People are still getting married and perhaps more so because of the economic climate. they say two incomes are better than one, but since this year, orders are for weddings of 10 and 13 guests," she said.

The largest, she adds, has been for 50 guests.

Francine Rickets of United Pastry Limited on Waltham Road notes that cake orders for weddings are much smaller than last year. Business has fallen by 50 per cent.

"I think people are trying to make their cakes themselves. For June, people are making enquiries, but no orders. I don't know if they are shopping around or what." According to Ricketts, most weddings since the start of the year, have been for about 30 guests.

"They want a big splash, but the money is not there. They realise that after the wedding, there are other obligations. Some people opt for one cake. They are no longer going the whole nine yards," she said.

One cake at United Pastry costs $12,000 while a traditional three-tier costs $40,000.

mostly single cakes

United normally does the flowers and the cake, providing cake stands and cutlery as well. The largest order to date for 2009, Rickets states, has been for a three-tier cake with cuts for 100 guests. Most orders are for a single cake and cuts for 30 guests.

Jacquie Stephens, co-owner with husband John Stephens of Exquisite Occasions on Constant Spring Road, who has been in the wedding business for 10 years, notes that the start of the year was rough "but we are good for June, July and August.

"We are faring okay, not fabulous. We do hireage and full décor for weddings. If one does not work, the other does."

Stephens admits that she has had to cut prices.

"What we had to do was to cut costs. We have to be much more aware of the clients' budget. We have noticed that the weddings have got smaller, anywhere from 30 to 50 people. An average wedding used to be 100-150 people."

The hireage side of the business is doing better than decorations.

"A lot of clients feel that they can do it themselves in décor. They just hire what they want and do it themselves," said Stephens.

"We had three last weekend who came in for consultation and resorted to just hireage alone, using the help of their friends to do decorations."

PRC Decorations' owner says she has just a few weeks left to vacate her shop after finding herself unable to pay the full rental in the last two months.

The stock is being discounted at 50 per cent to 80 per cent off, the small business owner said.

The straw that broke the camel's back, she said, was the refusal of a major local bank - an entity with which she has had a relationship since 1991 when she started business - to allow her to remove cash from an insurance policy pledged against her debt.

Decorations' sales declined

As expenses increased in 2008, PRC Decorations' sales also declined. Turnover for December - usually a good month for her wedding-products business - fell to around $500,000, representing half of the $1 million earned in Dec-ember 2007.

Rent also increased, but the raise was a gradual one, she said, adding that her landlord had been very understanding.

Since January 2009, however, business has declined sharply again and she was forced to send home four of her six workers and pay only half of her rent.

She has used up all her savings, including her pension, and has been been trying to sell out since late 2008. She has also been unable to re-stock, a fact which, she says, is partially responsible for declining sales.

"In most cases, people come in and say that they cannot get all the money they need from the bank, as it is only willing to lend them a certain portion."

PCR Decorations is considering selling the business as a going concern for around $3 million, money that the owner says would be just enough to get rid of her debts and allow her to start anew in a much smaller space.

She would also consider an equity partner.

no plans to give up

Inventory for sale includes a large commercial engraving machine with compressor, priced at US$3,900, and a screen-printing machine for US$3,000. Other equipment include a spiral binder, a T-shirt press, and a hot-stamp printer. Computers used in her Internet café have already been sold for $20,000 each.

The store owner has no plans to give up on business.

"In the United States, they are sharing space. Maybe I can find someone to share a store with, especially if they are in the same business of weddings."

avia.collinder@gleanerjm.com