WAPPINGERS FALLS – A popular daycare center in Wappingers Falls sent a notice to their clients on Tuesday, February 20, announcing they were permanently closing on February 29. The notice did not provide any specific reason and parents have been left scrambling to find suitable daycare before the end of this month.
R.J.A.C.E. Inc. is owned by Rachel Bieber, who operates the J.A.C.E. Daycare and Early Learning Center in the Imperial Plaza Shopping Center on Route 9 in Wappingers Falls. Parents have contacted Mid-Hudson News telling them of the abrupt closure, along with complaints that Rachel Bieber has failed to respond to phone calls or emails from clients. “We found out in a note from Rachel saying that she was closing due to unforeseen circumstances but wouldn’t tell us how to get the money back that we paid in advance for next month,” said a mother of two children enrolled in J.A.C.E. The mother asked to remain anonymous because she is concerned that Bieber won’t refund the money if she speaks out.
Legal documents uncovered by Mid-Hudson News indicate that Bieber and her daycare were suffering extreme financial stress and defaulted on a major loan earlier this month. The creditor executed a judgment against Bieber on February 21, 2024.
A staff member said she was notified of the closing just before the parents were notified. She also indicated that Bieber did not provide the staff with a specific reason for the closing.
The note sent to parents and clients said in part, “It is with our deepest regrets that due to uncontrollable and unforeseen circumstances, the last day of operations for RJACE, Inc. will be February 29th, 2024.” The notice advised parents to make arrangements to pick up personal belongings before the February 29 deadline and also asked them to avoid questioning the staff members about the closure. Addressing the workers, the notice said, “Employees, this notice comes as much of a surprise as it does to us and more details will be shared by the lawyers as they divulge details to us. Please leave all property of RJACE, Inc as you clock out on the final day.”
In November 2023, Bieber signed an agreement with Itria Ventures LLC, a venture capital lender to borrow $187,500. In exchange for the loan, Bieber signed a contract in which Itria allowed Bieber to collect a percentage of her accounts receivable until the $187,500 had been repaid. Between November 2023 and February 15, 2024, Bieber had paid $43,968.75, leaving her owing $143,331.25. When no payment had been forwarded to Itria on February 15, the venture capitalists drew up the legal papers to collect their judgment.
Itria Ventures LLC secured a judgment against the corporation and Bieber for $179,701.97 on February 16 and filed it with the Dutchess County Clerk’s Office on February 21, one day after the announced closure.
The judgment breakdown includes the outstanding amount of $143,531.25 plus 16 percent interest calculated from February 15 ($62.91), and the agreed upon legal fees (25 percent of Confessed Amount Outstanding) for $35,882.91 and $225 for the filing fee which equates to the $179,701.97.
Bieber did not respond to Mid-Hudson News requests for comment sent to her email. The website for the daycare was taken offline just after 7 p.m. Wednesday night.
