TentLogix building photo with Bankruptcy label

Tent rental service TentLogix has filed for Chapter 11 bankruptcy as of late November 2020 — following an indictment in 2019 for allegedly concealing from Homeland Security that 96 of their workers were undocumented non-US citizens.

TentLogix, which is headquartered in Indiantown, Florida, claims in the bankruptcy filing that they owe $10.6 million in secured and unsecured claims to 77 creditors — 15 of which are contractors or material suppliers

In September of 2019, the CEO of TentLogix, Gary Hendry, pleaded guilty to a criminal conspiracy charge related to the indictment that led to prison time. 

According to federal court documents, the case closed on December 23, 2019. TentLogix was then placed on a four-year probation and faced a monetary judgement worth $3,033,946 in fines. 

At the time of their bankruptcy filing in November of 2020, TentLogix reported having:

  • $10,689,420.09 in total liabilities 
  • $4,629.97 in total checking 
  • $221,709.52 in accounts receivable 
  • $3,135,866.43 in total assets 

From the beginning of the fiscal year in 2020 until the November 27 bankruptcy filing date, TentLogix reported $8,111,258.43 in gross revenue, according to the bankruptcy filing. 

In 2019, the tent rental and events company reported earning $19,657,945 in gross revenue — signaling a 57% decrease in revenue from 2019 to 2020. 

TentLogix claimed they earned $25,953,743 in gross revenue in 2018 — which is a 24% decrease in revenue from 2018 to 2019. 

What is Chapter 11 bankruptcy? 

Chapter 11 bankruptcy, also known as “reorganization bankruptcy,” allows for a debtor to reorganize their business affairs, debts, and assets. As explained by USCourts.gov, Chapter 11 bankruptcy is typically filed by corporations or partnerships. 

Overall, Chapter 11 bankruptcy is designed for creditors to be paid back overtime while the debtor drafts a plan of reorganization in order to salvage their business. If the debtor does not draft their plan for reorganization, Chapter 11 allows the creditors to propose a plan instead. 

USCourts.gov also explains that there are generally three potential outcomes for the debtor when filing for Chapter 11 bankruptcy filing, which include: 

  • Reorganization of their business affairs, debts, and assets
  • Conversion to Chapter 7 bankruptcy 
  • Dismissal 

TentLogix reports 60 unsecured, 17 secured claims

Unsecured claims 

At the time of their bankruptcy filing, TentLogix reported having 60 unsecured claims worth a combined $9,849,051.89

Of the 60 creditors, 15 are contractors or material suppliers

  • Angie’s Dumpster Service – $3,996.15
  • BrandSafway Scaffolding Systems, LLC – $40,045.17
  • D.O.T Tie Down and Lifting Equipment – $12,442.59
  • Mainline Carpets – $242,194.12
  • Marquee Event Rentals – 34,655.31
  • Metro Fire Sprinker Services, Inc – $8,824.59
  • NAG Properties, LLC – $382,507.90
  • Nationwide Lift Trucks – $5,578.71
  • Parkman Electric – $3,358.54
  • Portable Air – $36,897.13
  • Sunbelt Rentals – $174,597.82
  • Territo Electric, Inc – $6,500
  • Tideline Staffing – $28,154.93
  • United Rentals, Inc. – $454,072.35
  • United Site Services of Florida, Inc. – $35,754.08

Secured claims 

TentLogix’s Chapter 11 bankruptcy filing also lists 17 secured claims worth $840,368.20

TentLogix’s federal indictment

After TentLogix sent over 164 Form I-9s (which must be completed by every employer in the US) to Homeland Security in April of 2016, Homeland Security uncovered the fact that 96 workers from TentLogix were not legal citizens of the United States.

In September 2019, TentLogix CEO Gary Hendry pleaded guilty to a criminal conspiracy charge related to the indictment. Beyond prison time, Hendry has also faced a fine of $75,000, and relinquished $282,789 in property value, as reported by the Miami Herald

TentLogix President Dennis Birdsall was hit with a $15,000 fine and lost $170,943 in forfeiture. Birdsall also received five years’ probation for the same charges laid down against the company’s former CEO. 

Kent Hughes, TentLogix’s Corporate Officer at the time of the criminal activity, was fined $7,500, forfeited $80,000, and received three years’ probation under the same charges. 

The Miami Herald reports that Hendry and Hughes created a subsidiary of TentLogix, known as KH Services, to foster the previously mentioned undocumented workers. The fraudulent company’s own address was that of Hughes’ personal home. 

As stated in Hendry’s admission of facts from the indictment published by the Miami Herald: “Hendry agreed to cover all of the costs associated with KH Services, and agreed to pay Hughes a fee for each alien who was transferred from TentLogix’s payroll to KH Services’ payroll.”

TentLogix explained to Homeland Security that 92 of the 96 illegal employees had been dismissed by May of 2017. However, through KH Services, these illegal aliens remained a part of TentLogix while the KH Services paid the workers “$3 million over 23 wire transfers,” according to the Miami Herald.