Time-share owner Consolidated Resorts to file for bankruptcy - Business

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Jun. 24, 2009
Copyright © Las Vegas Review-Journal

Time-share owner Consolidated Resorts to file for bankruptcy

By ARNOLD M. KNIGHTLY and MIKE WEATHERFORD
LAS VEGAS REVIEW-JOURNAL

Tahiti Village Resort shown on Tuesday, June 23, 2009. The property owners, Consolidated Resorts, told its Las Vegas sales staff they are preparing to file for bankruptcy.
Photo by Duane Prokop.

Consolidated Resorts, owners of the time share Tahiti Village Resort on Las Vegas Boulevard South, is filing for bankruptcy protection, the company confirmed late Tuesday.

The company shut down its sales and marketing offices in Las Vegas, Orlando, Fla., and Hawaii on Tuesday.

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It is not known how many jobs in Las Vegas were lost.

The company blamed the "dramatic changes in the economy and the shrinking time-share environment" for the decision.

"The scarcity of lenders in the time-share industry has made it impossible to continue the company," a statement said.

The company will continue to operate its 14 resorts in Las Vegas, Hawaii and Florida during the restructuring.

"The resorts will continue to operate uninterrupted so owners that have reservations do not need to worry," the statement said.

Locally, the company owns the property on Las Vegas Boulevard and Warm Springs Road, and Tahiti and Club de Soleil on Tropicana Avenue.

Tahiti Village Resort shut down information booths Tuesday around town, including those in Strip resorts and along Las Vegas Boulevard.

The bankruptcy filing could be a blow to small-show operators along the Strip.

David Saxe, who operates the V Theater at the Miracle Mile Shops at Planet Hollywood Resort, said he received the call that Consolidated was filing for bankruptcy when his plane landed in Burbank, Calif., for a business trip.

Consolidated owes Saxe $100,000 for show tickets the time-share company used to lure customers. When someone takes a tour or sits through a pitch, Saxe explains, they bring the voucher to the box office.

Saxe then adds up the voucher and bills them. He estimates time shares account for 20 percent of total show tickets bought in Las Vegas.

"I rely on the time shares. For shows like mine, it can be as much as 50 percent of our business," he says. "It's no cash outlay like advertising."

Contact reporter Arnold M. Knightly at aknightly@reviewjournal.com or 702-477-3893.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. Report abuse Anthony Stoeckel wrote on October 16, 2009 10:16 AM: My e-mail is anthonystoeckel@yahoo.com phone is 407-447-4401 ext. 913 Report abuse Anthony Stoeckel wrote on October 16, 2009 10:12 AM: There are a few options for timeshare owners per the attorney general, ftc(federal trade commission) and the departmentand commission of real estate. I can deffinately help. Report abuse anthony stoeckel wrote on October 16, 2009 10:07 AM: lt Q You don't have to be stuck with your timeshare, there are attorneys working with people right now, I actually work with them. they can get you out free and clear, NO credit damage, NO more payments, nothing. Report abuse Jonathan Paul wrote on October 16, 2009 05:16 AM: One of the most important things to look for in a timeshare is location. Whether you will be acquiring it for personal use or to trade it, at a later date, you’ll want something located in a very desirable area. Of course, the price will be higher but it is more than worth it, in the long run.If possible, you should never purchase a timeshare property without actually visiting it. Many individuals have done so, only to find the location or unit to be undesirable when they finally have the opportunity to vacation there.The only time this may not be an issue is if you are purchasing from someone that you trust. Even then, it is still something to consider. You will just have to use your own judgment. Thanks a lot blogger for such a nice post about timeshare property . Thank u :) Keep blogging http://propertyinvestment.blogebay.com/2009/10/16/investment-guide-for-time-share-property/ Report abuse Lt Q wrote on August 19, 2009 09:42 AM: I agree they lie to everyone. I just got ack from Iraq and they too my bonus and then kept billing me more and more before they even le tme use it?? Am i stuck with this damn thing?? Report abuse Larry B. wrote on August 13, 2009 10:27 AM: Wow, I was shown the Consolidated Resorts article on 8-12-2009 and read comments from as early as July 22, 2009 about the bankruptsy. They just took the August payment out of my bank account and did not notify me or call me like they would if I didn't make a payment on time or similiar actions on my part. I've been with them for 3 years now and what lousy courtesy on their part for us to read about the bankruptsy in the newspaper rather than a heartfelt letter from Consolidated Resorts. We've been duped at a time in this country when companies need to show some serious honesty. Thank You. Report abuse BERTHA CORTEZ wrote on August 03, 2009 12:33 PM: WHAT WOULD HAPPEN TO OWNERS IF THEY GO BANKRUPT AND HAVE TO SHUT DOWN. WILL WE STILL HAVE TO PAY MONTHLY OR DO WE GWT ANYTHING BACK FOR PAYING ALL THOSE YEARS .PLEASE LET ME KNOW THANK YOU. Report abuse alex trinh wrote on July 27, 2009 06:47 PM: What can we do at this time with our timeshare with Tahiti Village Resort? Is the owner from Tahiti Resort will send us further notice? I want to know what will happens next? please send me any information or further action to my email...Thanks Report abuse Linda Eich wrote on July 27, 2009 05:55 PM: We are owners in Florida.Does this mean that we will lose all are money that we paid in to this company??? We have belonged to consolidated for over five years and have used it ever year. We have always paid our maintenance fees and We own our timeshare. Are we out all that money????? Linda Eich Report abuse CanuckCouple wrote on July 25, 2009 11:45 AM: Like surgeon, we bought our timeshare because we felt it was a good investment as we like travelling - not just in the Americas but all over the world. Isnt this the essence of buying a timeshare property? It is unfortunate that the sales and marketing team (CRI) of the developer was let-go but this is the most prudent thing to do if there needed some stop-gap on the liquidity of the business. That said, we do feel apprehensive on what possibilities lie on our fractional ownership. We just hope that the company gets a chance to junk the bad (selling) practices and restructure so that everybody can get back to business. Read All Comments