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MLM and Travel It's No Good! YTB, TraverUs, GTI, World Ventures. All no good for the travel industry! MLM and Travel It's No Good! YTB, TraverUs, GTI, World Ventures. All no good for the travel industry! MLM and Travel It's No Good! YTB, TraverUs, GTI, World Ventures. All no good for the travel industry!
Can't wait for the spin! LOL!
ReplyDeleteAT, I am already loading up on the Dramamine.
ReplyDeleteI think we can already surmise the number of members has dropped and the on-hand cash coffers will be looking very thin. I am also betting that the loss of members in the 4th quarter will be far worse than the third. I also wonder what the legal fees will look like. lol It won't matter however to the die hards who will spend weeks saying something like, "oh boy, travel sales are up 2%" or some such nonsense. But it will be fun!
Speaking of YTB, SEC filings, and YTB being cash needy....has anyone seen this yet?
ReplyDeleteForm 8-K for YTB INTERNATIONAL, INC.
12-Nov-2008
Entry into a Material Definitive Agreement, Financial Statements and Exhi
Item 1.01 Entry into a Material Definitive Agreement.
Effective as of November 6, 2008, YTB International, Inc. (the "Company") entered into a contract (the "Building One Sales Contract") with Prestige Management Services, LLC (the "Buyer") to sell real property and certain office equipment located at One Country Club View, Edwardsville, Illinois 62025. The purchase price is $1.5 million of which $100,000 of earnest money was deposited by the Buyer and is being held in escrow until the closing. The closing, which is scheduled to occur on or before December 16, 2008, is contingent upon the Buyer obtaining 80% loan to value financing by December 5, 2008.
Yes, I saw that filing this morning and was going to write a blog entry about it. YTB purchased this property just over 1 year ago for $1.85 million and is now selling it for $1.5 million. I don't recall the purchase including office equipment, so they are losing more than the $0.35 million the sale would indicate. Why would they be doing this, unless they needed the cash?
ReplyDeleteBuried deep in the sales contract is that the buyer now holds an option to buy the property at 600 Country Club View as well. They have 12 months from the closing of the purchase of 1 Country Club View to exercise that option.
I wonder who Prestige Management Services is buying this on behalf of? They typically don't purchase properties for themselves, but for clients that they will provide management services for.
In the current real estate market a $0.35 million loss (even with office equipment thrown in) is probably not a bad offer. If they wait longer they'll probably lose even more.
ReplyDeleteBuy High - Sell low. Seems to be a catch phrase around YTB.
ReplyDelete