Luxury Link declares bankruptcy. Trips Canceled (thread re-opened)
May 22, 2015, 2:10 pm
#31
Join Date: Feb 2001
Location: Seattle
Posts: 559
The Forbes article (http://www.forbes.com/sites/douggoll...ed-operations/) has been updated today with a statement from Secret Escapes that discusses their relationship with LL and claims no payments at Vacationist or Secret Escapes are at risk.
May 22, 2015, 8:09 pm
#32
Company Representative, LuxuryLink
Join Date: May 2015
Posts: 2
Vacationist.com
As has been discussed on various travel websites including this one, and noted in the May 21st ForbesLife.Com article Luxury Link Travel Group LLC owns the flash sale website Vacationist.com.
Vacationist.com is a pass through site from which Luxury Link does not collect any money from the customer. This website and its customers will be unaffected by the Luxury Link ABC and the site will continue to provide the finest deals and services as it always has provided.
Over the coming days and weeks Vacationist.com may be sold as an asset of Luxury Link and its operations should remain uninterrupted.
We would like our customers to know that any personal information collected during the course of business and in accordance with the terms and conditions of Vacationist.com Privacy Statement will continue to be protected with the highest level of security. Also, any sale of Vacationist.com will uphold the terms and conditions our customers previously agreed to.
We hope you continue to enjoy Vacationist.com and its exclusive travel deals.
-LL
Vacationist.com is a pass through site from which Luxury Link does not collect any money from the customer. This website and its customers will be unaffected by the Luxury Link ABC and the site will continue to provide the finest deals and services as it always has provided.
Over the coming days and weeks Vacationist.com may be sold as an asset of Luxury Link and its operations should remain uninterrupted.
We would like our customers to know that any personal information collected during the course of business and in accordance with the terms and conditions of Vacationist.com Privacy Statement will continue to be protected with the highest level of security. Also, any sale of Vacationist.com will uphold the terms and conditions our customers previously agreed to.
We hope you continue to enjoy Vacationist.com and its exclusive travel deals.
-LL
May 22, 2015, 8:34 pm
#33
Moderator: Luxury Hotels and FlyerTalk Evangelist
Join Date: Sep 2002
Location: Palo Alto, California,USA
Posts: 17,854
Is it possible also to make some comment about the situation for the people who booked directly through LL and have not yet received what they paid for? I am sure that would be of great interest as well.
May 23, 2015, 5:51 am
#34
Join Date: Mar 2004
Programs: DL PM, DL MM, Hilton Gold, Marriott Gold, SPG
Posts: 804
In 2014 and 2015, Luxury Link sold gift certificates with a 10% bonus. Could the LL representative please comment on the status of those gift certificates that are unused?
May 23, 2015, 7:35 am
#35
FlyerTalk Evangelist
Join Date: Jun 2006
Location: IAD/DCA
Posts: 31,797
moved
Last edited by Kagehitokiri; May 28, 2015 at 12:53 pm
May 23, 2015, 4:03 pm
#36
Company Representative, LuxuryLink
Join Date: May 2015
Posts: 2
-LL
May 27, 2015, 10:43 pm
#37
Join Date: May 2015
Posts: 1
Luxury Links - Good News
Hello all,
I thought that I would post some good news that my family just received from the VISA company in CANADA in regards to LL. They will be refunding our payments made to LL and we are still going on the vacation! Also, the 2 hotels that we were staying at honoured the original package (Secrets and Vellas) so good Karma to those people who run the business side of things for these hotels! This was very stressful for us as we have not been together as a family for many years and we had this planned 6 months ago.
The relief is terrific and is a warning to all to book using Visa or MC as they seem to be using their extreme wealth as CC company's in the correct manner.
enjoy!
Fryguyflyer
I thought that I would post some good news that my family just received from the VISA company in CANADA in regards to LL. They will be refunding our payments made to LL and we are still going on the vacation! Also, the 2 hotels that we were staying at honoured the original package (Secrets and Vellas) so good Karma to those people who run the business side of things for these hotels! This was very stressful for us as we have not been together as a family for many years and we had this planned 6 months ago.
The relief is terrific and is a warning to all to book using Visa or MC as they seem to be using their extreme wealth as CC company's in the correct manner.
enjoy!
Fryguyflyer
May 28, 2015, 10:01 am
#38
Join Date: Mar 2010
Posts: 9
If not, what is my recourse to get a refund of the balance on my account?
May 28, 2015, 12:53 pm
#39
FlyerTalk Evangelist
Join Date: Jun 2006
Location: IAD/DCA
Posts: 31,797
http://bankruptcy.cooley.com/2008/03...simple-as-abc/
http://en.wikipedia.org/wiki/Liquidation
http://www.forbes.com/sites/douggoll...ed-operations/
now has quote from possible assignee for liquidation
unsecured creditors do not get anything
May 28, 2015, 1:33 pm
#40
Suspended
Join Date: Aug 2010
Location: DCA
Programs: UA US CO AA DL FL
Posts: 50,262
Unless someone finds $Billions stashed in some secret off-shore account, unsecured creditors will never see anything unless they paid with a CC. The CC people will see a 100% relatively instant credit.
Yet another caution to always pay for services to be delivered in the future with a CC.
Yet another caution to always pay for services to be delivered in the future with a CC.
May 30, 2015, 1:49 pm
#41
Join Date: Dec 2004
Location: SEA
Posts: 1,887
We bought on a couple packages last year for a stay in Cancun in November of this year. Even though it was over a year ago Discover credited our account for the charges. Amazing, as I thought we were out of luck for purchases made that long ago. Our other purchase was made with Citi. Still waiting to hear from Citi.
FWIW, we had been using LL for years and had many amazing trips. Sad to see them go. It would appear they made money when people couldn't use their packages. They didn't pay the hotel until the stay, so presumably they would pocket the money when people couldn't use non-refundable packages.
I would think the hotels would be at risk here. After all, they advertised on LL and had agreements with LL to offer the packages. For the hotels to just say, sorry, we allowed LL to sit on your money for a year and never got paid so we won't honor your reservation just doesn't pass the sniff test. I would think they would have some indirect fiduciary responsibility as far as the credit risk.
FWIW, we had been using LL for years and had many amazing trips. Sad to see them go. It would appear they made money when people couldn't use their packages. They didn't pay the hotel until the stay, so presumably they would pocket the money when people couldn't use non-refundable packages.
I would think the hotels would be at risk here. After all, they advertised on LL and had agreements with LL to offer the packages. For the hotels to just say, sorry, we allowed LL to sit on your money for a year and never got paid so we won't honor your reservation just doesn't pass the sniff test. I would think they would have some indirect fiduciary responsibility as far as the credit risk.
Jun 9, 2015, 8:59 am
#42
Original Poster
Join Date: May 2013
Location: San Francisco, CA
Posts: 45
Just got this in my inbox with a couple attachments:
Dear Luxury Link Creditor:
Luxury Link LLC aka Luxury Link Travel Group ceased all operations and entered into a General Assignment for the Benefit of Creditors (General Assignment) on May 15, 2015. The administration of the General Assignment has begun. Attached to this email is a letter and proof of claim form for your review. The letter addresses the General Assignment and provides instructions for submitting the proof of claim form. As noted in the letter and in the proof of claim form, the date by which claims must actually be received (the claims bar date) is 5:00 p.m. (Pacific Time) on November 6, 2015.
Claims received after 5:00 p.m. (Pacific Time) on November 6, 2015 will be rejected and will be ineligible to participate in any distribution to creditors, should there be monies left to distribute.
Corporate Management Inc.
Assignee of Luxury Link General
Assignment for the Benefit of Creditors
Luxury Link LLC aka Luxury Link Travel Group ceased all operations and entered into a General Assignment for the Benefit of Creditors (General Assignment) on May 15, 2015. The administration of the General Assignment has begun. Attached to this email is a letter and proof of claim form for your review. The letter addresses the General Assignment and provides instructions for submitting the proof of claim form. As noted in the letter and in the proof of claim form, the date by which claims must actually be received (the claims bar date) is 5:00 p.m. (Pacific Time) on November 6, 2015.
Claims received after 5:00 p.m. (Pacific Time) on November 6, 2015 will be rejected and will be ineligible to participate in any distribution to creditors, should there be monies left to distribute.
Corporate Management Inc.
Assignee of Luxury Link General
Assignment for the Benefit of Creditors
Jun 25, 2015, 5:30 pm
#43
Join Date: May 2015
Posts: 2
I just got back from Italy and the two LL hotels I booked had been paid. However, two others that I booked for my son's honeymoon have not been paid. I contacted both hotels and they agreed to give me the same package offered by LL, one of them even at a cheaper price. Of course, I have to pay twice if my credit card dispute does not work out. The thought occurred to me...why do we bother to go through these travel websites...find the deal you want and then go directly to the hotel and let them know you are considering booking through LL or whoever, and ask them to give you the same deal directly!!
Jun 25, 2015, 5:39 pm
#44
FlyerTalk Evangelist
Join Date: Jun 2006
Location: IAD/DCA
Posts: 31,797
1. some operators might be trying to balance loss-leaders with profit makers
2. no idea re auditing, but virtuoso (for example) seems protective of contract
but yeah, many here book direct, and negotiating does not always require skill
2. no idea re auditing, but virtuoso (for example) seems protective of contract
but yeah, many here book direct, and negotiating does not always require skill
Last edited by Kagehitokiri; Jun 25, 2015 at 6:22 pm
Jun 27, 2015, 1:46 am
#45
Join Date: Jun 2015
Posts: 3
as a former employee of luxury link i can provide some insight
i worked at luxury link from 2008 to 2013
in november 2012, the company hired a new ceo, scott morrow
in 2 years he single handedly bankrupted the company
i suspect there was foul play and corporate malfeasance
i am currently working with a lawyer on building a class action lawsuit to make the customers who lost money whole again
what killed luxury link was new management in 2013: a new ceo and new cfo who did not understand the business and made many terrible reckless decisions.
on may 15 they fired the entire company with zero warning and zero severance.
i suspect there was foul play similar to enron.
as a former employee, i believe there was massive fraud
cooley did legal work for luxury link
luxury link held on to the money to pay its executives and investors
hotels can reduce their liability by not honoring the reservation
customers who paid and can't get reimbursed by visa or mastercard or whoever are out of luck
what the executives did was unethical and unconscionable and probably illegal, civil and criminal
a creditor can still sue luxury link because it is ABC, not a chapter 7 bankruptcy.
if we can prove fraud, corporate malfeasance or other form of criminal behavior, LLC laws do not protect executives or investors
i have asked the company handling the liquidation to conduct a forensic audit but he refuses to
you found the smoking gun!!!!
i worked at luxury link from 2008 to 2013
in november 2012, the company hired a new ceo, scott morrow
in 2 years he single handedly bankrupted the company
i suspect there was foul play and corporate malfeasance
i am currently working with a lawyer on building a class action lawsuit to make the customers who lost money whole again
on may 15 they fired the entire company with zero warning and zero severance.
i suspect there was foul play similar to enron.
Quit worrying about whether they were properly licensed and also about what others may be posting. The company is in bankruptcy and you have a vacation on the line.
The bottom line is that if you pay for any good or service now which will be received or delivered in the future do not use any form of payment other than a US-based CC. This means no debit cards, gift cards, ACH or whatever. This applies not only to OTA's, but to air carriers, prepaid hotels, tours and the like.
Why? Because you have 100% protection for 100% of the amount. Bankruptcies happen. When they do, consumers are most typically unsecured creditors and therefore come close to the end of the line among creditors. Unless there has been massive fraud and there really are funds to pay creditors, those at the end of the line will receive close to nothing (or nothing) and that may not happen for years.
OTOH, CC's will issue a credit relatively immediately. That may not replace what you had, but you at least have your cash back.
The bottom line is that if you pay for any good or service now which will be received or delivered in the future do not use any form of payment other than a US-based CC. This means no debit cards, gift cards, ACH or whatever. This applies not only to OTA's, but to air carriers, prepaid hotels, tours and the like.
Why? Because you have 100% protection for 100% of the amount. Bankruptcies happen. When they do, consumers are most typically unsecured creditors and therefore come close to the end of the line among creditors. Unless there has been massive fraud and there really are funds to pay creditors, those at the end of the line will receive close to nothing (or nothing) and that may not happen for years.
OTOH, CC's will issue a credit relatively immediately. That may not replace what you had, but you at least have your cash back.
http://en.wikipedia.org/wiki/General_assignment
http://bankruptcy.cooley.com/2008/03...simple-as-abc/
http://en.wikipedia.org/wiki/Liquidation
http://www.forbes.com/sites/douggoll...ed-operations/
now has quote from possible assignee for liquidation
unsecured creditors do not get anything
http://bankruptcy.cooley.com/2008/03...simple-as-abc/
http://en.wikipedia.org/wiki/Liquidation
http://www.forbes.com/sites/douggoll...ed-operations/
now has quote from possible assignee for liquidation
unsecured creditors do not get anything
We bought on a couple packages last year for a stay in Cancun in November of this year. Even though it was over a year ago Discover credited our account for the charges. Amazing, as I thought we were out of luck for purchases made that long ago. Our other purchase was made with Citi. Still waiting to hear from Citi.
FWIW, we had been using LL for years and had many amazing trips. Sad to see them go. It would appear they made money when people couldn't use their packages. They didn't pay the hotel until the stay, so presumably they would pocket the money when people couldn't use non-refundable packages.
I would think the hotels would be at risk here. After all, they advertised on LL and had agreements with LL to offer the packages. For the hotels to just say, sorry, we allowed LL to sit on your money for a year and never got paid so we won't honor your reservation just doesn't pass the sniff test. I would think they would have some indirect fiduciary responsibility as far as the credit risk.
FWIW, we had been using LL for years and had many amazing trips. Sad to see them go. It would appear they made money when people couldn't use their packages. They didn't pay the hotel until the stay, so presumably they would pocket the money when people couldn't use non-refundable packages.
I would think the hotels would be at risk here. After all, they advertised on LL and had agreements with LL to offer the packages. For the hotels to just say, sorry, we allowed LL to sit on your money for a year and never got paid so we won't honor your reservation just doesn't pass the sniff test. I would think they would have some indirect fiduciary responsibility as far as the credit risk.
hotels can reduce their liability by not honoring the reservation
customers who paid and can't get reimbursed by visa or mastercard or whoever are out of luck
what the executives did was unethical and unconscionable and probably illegal, civil and criminal
a creditor can still sue luxury link because it is ABC, not a chapter 7 bankruptcy.
Unless someone finds $Billions stashed in some secret off-shore account, unsecured creditors will never see anything unless they paid with a CC. The CC people will see a 100% relatively instant credit.
Yet another caution to always pay for services to be delivered in the future with a CC.
Yet another caution to always pay for services to be delivered in the future with a CC.
Unless someone finds $Billions stashed in some secret off-shore account, unsecured creditors will never see anything unless they paid with a CC. The CC people will see a 100% relatively instant credit.
Yet another caution to always pay for services to be delivered in the future with a CC.
Yet another caution to always pay for services to be delivered in the future with a CC.
Here are some other potential ramifications/issues raised by this Luxury Link default:
1. Luxury Link was headquartered in California, where the law requires all sellers of travel to register with the Attorney General's office and to display a California Seller of Travel number on all "advertising" (including websites). Luxury Link does not have a prominently displayed CST number, as required by law, but buried in its terms is this information:
14.8 License Information. Below is the information for Luxury Link’s registered sales license. Registration as a seller of travel does not constitute approval by the State of California. Luxury Link is a participant in the travel Consumer Restitution Corporation (TCRC).
State of California
Seller of Travel
Registration No: 2056321-40
Here's the interesting bit. Plug that registration number into the California DOJ/AG site for sellers of travel (https://sotas.doj.ca.gov/sellerSearch.action), and it turns up NOTHING. Nor does a search of the term "luxury link." That suggests to me that either Luxury Link did have a CST number at some point, but let it lapse (which is illegal, if they continued to sell travel) OR the CST number on Luxury Link's site was bogus.
If Luxury Link did not have a valid CST number, that means their claim to be participating in the Travel Consumer Restitution Corporation -- which would have been a potential resource for anyone who lost money in this debacle -- is not true. So that closes one avenue for being reimbursed.
2. The Business Consumer Alliance (http://www.businessconsumeralliance....k-llc-13142382) gave Luxury Link its highest rating (AAA - "An exemplary rating. This means that nothing in our files causes us to have any doubt about the company’s reliability."). Needless to say, I won't be trusting any future ratings from that site.
3. In addition to its relationship with Gilt Groupe, Luxury Link apparently had some sort of relationship with Vacationist, a "member only" discount luxury travel site. There is a link to Vacationist from the bottom of the Luxury Link home page, and Vacationist is included in Luxury Link's Terms of Use (http://about.luxurylink.com/terms/). It is described as "a partnership between Company [Luxury Link] and Travel + Leisure from American Express Publishing Corporation."
Yet the Vacationist site states, "These travel arrangements are provided by the tour operators/suppliers featured on the website, which is powered by Secret Escapes Ltd, who acts as an agent for the tour operators/suppliers and is wholly independent of Luxury Link Travel Group."
So it's unclear what the relationship is. I'm hoping Luxury Link was not in charge of paying travel suppliers on behalf of Vacationist (or of Secret Escapes, which is yet another discount luxury travel site).
1. Luxury Link was headquartered in California, where the law requires all sellers of travel to register with the Attorney General's office and to display a California Seller of Travel number on all "advertising" (including websites). Luxury Link does not have a prominently displayed CST number, as required by law, but buried in its terms is this information:
14.8 License Information. Below is the information for Luxury Link’s registered sales license. Registration as a seller of travel does not constitute approval by the State of California. Luxury Link is a participant in the travel Consumer Restitution Corporation (TCRC).
State of California
Seller of Travel
Registration No: 2056321-40
Here's the interesting bit. Plug that registration number into the California DOJ/AG site for sellers of travel (https://sotas.doj.ca.gov/sellerSearch.action), and it turns up NOTHING. Nor does a search of the term "luxury link." That suggests to me that either Luxury Link did have a CST number at some point, but let it lapse (which is illegal, if they continued to sell travel) OR the CST number on Luxury Link's site was bogus.
If Luxury Link did not have a valid CST number, that means their claim to be participating in the Travel Consumer Restitution Corporation -- which would have been a potential resource for anyone who lost money in this debacle -- is not true. So that closes one avenue for being reimbursed.
2. The Business Consumer Alliance (http://www.businessconsumeralliance....k-llc-13142382) gave Luxury Link its highest rating (AAA - "An exemplary rating. This means that nothing in our files causes us to have any doubt about the company’s reliability."). Needless to say, I won't be trusting any future ratings from that site.
3. In addition to its relationship with Gilt Groupe, Luxury Link apparently had some sort of relationship with Vacationist, a "member only" discount luxury travel site. There is a link to Vacationist from the bottom of the Luxury Link home page, and Vacationist is included in Luxury Link's Terms of Use (http://about.luxurylink.com/terms/). It is described as "a partnership between Company [Luxury Link] and Travel + Leisure from American Express Publishing Corporation."
Yet the Vacationist site states, "These travel arrangements are provided by the tour operators/suppliers featured on the website, which is powered by Secret Escapes Ltd, who acts as an agent for the tour operators/suppliers and is wholly independent of Luxury Link Travel Group."
So it's unclear what the relationship is. I'm hoping Luxury Link was not in charge of paying travel suppliers on behalf of Vacationist (or of Secret Escapes, which is yet another discount luxury travel site).
you found the smoking gun!!!!
Last edited by RichardInSF; Jun 28, 2015 at 12:26 pm Reason: multiple consecutive posts by same person