We need to wait a few more days for the YTB 10-Q filing, but it appears that they need to raise some cash. According to this 8-K filing, YTB is selling its property at 1 Country Club View in Edwardsville, IL. The property is being sold to Prestige Management Services, LLC for $1.5 million. This is the same property that YTB acquired a little more than a year ago, and according to this 8-K filing paid $1.85 million for.
The current sale is not only for the building and land, but also "All office equipment to remain with building to include: Cubicles, Chairs, Desk, Tables, Break Room Equipment. Sellers may leave or take Phone system." Computers and Computer Systems are excluded. Further, the buyer has taken an option to purchase 600 Country Club View at any time within 12 months of the closing of this sale.
This means that YTB is losing $350,000 on the sale, plus the cost of the equipment and furniture, plus the costs of acquisition and sale.
Why would they be doing this? The obvious speculation is that the company is bleeding financially, and needs to raise cash.
A quick search found a Prestige Management Services, LLC in Alton, IL, but their website, such as it is, doesn't really give us any information about them. The "whois" check shows the site to be registered to the website hosting company. What appears to be a related company, Prestige Management, Inc. is located in the same town, and could have formed an LLC to purchase the property, rather than buy it directly for the corporation. I guess it doesn't really matter who the buyer is.
This property that has been sold was used by YTB for administrative offices. What property will they be using now for this purpose? Have they laid-off so many people that they no longer need the space? Perhaps they will be leasing back the offices. If so, since they were leasing them prior to the 2007 purchase, why did they buy in the first place?
Hopefully the answers to these questions, and others, will be made public when the 10-Q is filed on 11/14.
Do you think Liberty, Cruise Value Centers, or American Express might be interested in leasing 1 Country Club Drive from us instead
ReplyDeleteof selling it?
We'll even kick in 3 to 8 year old office furniture to boot!
It will be even more interesting to see the garage sale that the Old Fart will be having when Simmions exercises his option and takes back the "Mansion" in 2010 and boots him to the curb.
ReplyDeleteIs this hte fabled "Headquarters" where they hv "Red Carpet Day"?
ReplyDeleteRed Carpet Day is held in the old K-Mart that they are refurbishing.
ReplyDeleteBet no matter what the report says you will call it negative.
ReplyDeleteHmmm I don't see how the report could be positive, so I guess you would win that bet.
ReplyDeleteExpectations:
RTA membership down
New Enrollments down
Cashflow down
Stock price down
etc etc etc
I'm just waiting to see how the ytbites are going to spin the loss of RTA's, income, etc. as a positive for them. You just know that any and every thing that is negative won't be the fault or be caused by ytb. It will all be the fault of everyone and every thing else in the world. The economy, the lawsuit by the CA AG, this blog, blah, blah, blah.
ReplyDeleteJust as predictable will be the antiytbites spin as all is lost. I am predicting that the rta's will be down but the 10q will be better than the last two.
ReplyDeleteYep, Better than the last.
ReplyDelete