TarheelTraveler

SherpaReport writes about the Portofino Club restructuring.

Here is the link:

Portofino Club Restructuring - SherpaReport

One main point of the article is the problem that is created when early members pay artificially low dues that can't cover the operating costs of the properties.

DC4MS

Nick Copley spoke to Ron Tapp, the founder and CEO of Portofino Club

The club is planning a private placement for next month and also has four of its homes available for sale, one of which is due to close this Friday. By the end of April Ron is expecting the club to be in a much stronger financial position.

Portofino was under capitalized from the start, but also set both it's initial membership deposits and its annual fees too low for the level of homes and services it is providing.


After its recapitalization Portofino will also be restructuring it's membership so that all the refundable deposits are secured against individual properties in the clubs portfolio.

Desties

It may apparently be worse than just a restructuring. According to Halogen Guides, the number has been disconnected.

Portofino Pulls Disappearing Act

Are there any Portofino members on the forum who can confirm?

Desties

I just checked. The toll-free number is in fact disconnected BUT the local number -- 303-790-9404 -- is still working.

DC4MS

Halogen Guides has finally reported (6 days after SherpaReport) that Portofino Club is facing an increasingly tenuous financial situation.

According to Halogen Guides --- "How tenuous? It’s difficult to say given the fact that the club’s phone numbers appear to be disconnected, its e-mails go unanswered and its outside public relations director admits that even she has a hard time tracking anyone from Portofino down. What we do know is that President Rance Rogers left the club in September 2007, citing “professional differences in management decisions regarding the direction of the club for the future.”

Destination Club Portofino Pulls Disappearing Act | Halogen Guides Real Estate - Luxury 2.0 Guides and Reviews

Kagehitokiri

nice work desties.

AmyG

Yes Halogen Guides is reporting on the uncertain status of Portofino Club. Let's just say that the club wasn't eager to return our calls and has been generally unresponsive to our inqueries. Before we run any story, we like to give the club sufficient time to respond to our questions. It's unfortunate that they weren't interested in speaking to us in more timely manner to share their plans with our readers

Amy Gunderson
Editor
Halogen Guides

TarheelTraveler

There had been rumors floating around for some time. Hopefully, they will get merged in with someone else or successfully restructured. Any Portofino club members on the forum that can comment?

Maintaining the level of service and homes that DC members expect is very expensive, particularly when they have a high level of debt on them. When doing due diligence, prospective members really need to look at the debt load and cash flow to make sure they are joining a sustainable DC.

Kagehitokiri

i seem to recall someone saying bellehavens approached them and they said they were not interested in merging.

depending on success of restructure, maybe it will be bought out.

if UR/PE were done, they would be a good candidate for that.