Published Tuesday, June 23, 2009 | 6:29 p.m.
Updated Tuesday, June 23, 2009 | 8:16 p.m.
A Las Vegas timeshare company has shut down its sales and marketing operations and is planning to seek bankruptcy.
Consolidated Resorts Inc., which owns Tahiti, Tahiti Village and Club de Soleil in Las Vegas, made the announcement today. Tahiti Village is on Las Vegas Boulevard near the I-215 Beltway while Tahiti and Club de Soleil are on Tropicana Avenue, west of Decatur Boulevard.
"As a result of the dramatic changes in the economy and the shrinking timeshare lending environment, Consolidated Resorts, Inc. has shut down its sales and marketing operations in Las Vegas, Orlando and Hawaii and will file for bankruptcy protection," company spokesman Ken Chupinsky said in a statement. "The scarcity of lenders in the timeshare industry has made it impossible to continue the company."
The operation of the resorts will continue uninterrupted, he said.
"What doesn’t change for all of the owners that have purchased from us for over 25 years is the continued operation of the 14 resorts. The resorts will continue to operate uninterrupted so owners that have reservations do not need to worry."
Owners with questions were referred to Soleil Management, which can be reached at 1-800-775-8463.
Company officials weren't available to discuss what effect the shutdown will have on jobs.
Consolidated and its parent company, ASNY Corp., made news in 2007 when Wall Street investment bank Goldman Sachs Group Inc. said one of its real estate investment funds had made a substantial investment in ASNY's timeshare business.
But soon the economy went into a tailspin and the Wall Street Journal reported this year that by the end of 2008 the fund, Whitehall Street Global Real Estate Limited Partnership 2007, had written off to nothing its $372 million investment in ASNY.
Consolidated was sued earlier this year by Las Vegas Sands Corp.'s Palazzo resort on the Las Vegas Strip.
Palazzo alleged Consolidated had failed to open timeshare marketing booths at the Palazzo and the Shoppes at the Palazzo and owes it $8.5 million in annual rent. In its response, Consolidated said the five-year booth contracts were not enforceable. That lawsuit is pending in Clark County District Court.
A second suit was filed in the same court Tuesday against Consolidated by Casino Royale, 3411 Las Vegas Blvd. South.
Casino Royale alleged Consolidated breached an agreement to pay it for the right to operate a timeshare marketing booth used to invite prospects to a vacation ownership sales presentation.
Under the deal, Consolidated was to guarantee the property $20,000 in monthly room night revenue and buy 125,000 promotional slot play certificates per hear, the lawsuit said. Consolidated has not yet responded to that suit and its policy is to not comment on lawsuits.