Lusso Collection In Bankruptcy
Just last August, my colleague Jared Paul Stern reported that the Lusso Collection, a luxury destination club, had assembled a portfolio of multi-million dollar residences and announced an exclusive new membership club to augment their existing offers. Now, the club is in financial trouble. The Lusso Collection filed for Chapter 11 bankruptcy protection last month, leaving many members and visitors wondering what this means for their vacations and their money. Members paid one-time, refundable enrollment fees of $325,000 to $445,000 and annual dues of $21,000 to $31,000 depending on the type of properties and amount of vacation time used.
The combination of the falling stock market and the depressed market led to both less membership sales and less value for Lusso's existing properties. Lusso has more than 150 members and homes in 16 locations around the world. It is currently reorganizing and members are still be able to book stays at the club properties. Lusso joins another luxury club Yellowstone, which filed Chapter 11 in November.
[via Minneapolis Star-Tribune]