Today, LeisureLink announced that it is ceasing operations and discontinuing use of its platform, leaving dozens of property managers unpaid for completed reservations due to homeowners.
Earlier this year, LeisureLink raised a $17 million round of growth funding. The capital, provided by Clearstone Ventures, Kinderhook Industries, and Escalate Capital Partners, was intended to be used to scale company operations “to meet the rapidly expanding demand for LeisureLink’s services.”
However, LeisureLink began laying off employees in late spring and implementing spending freezes by early summer. By July, it was common knowledge to industry insiders that LeisureLink had been looking for a buyer.
In August, Leisurelink announced the sale of a portion of its business to Ski.com, and the remainder was rumored to be acquired by RealVoice and BookingPal. However, the respective deals both struggled to close, leaving LeisureLink out of cash and unable to continue operations.
According to a letter sent to clients, “While LeisureLink attracted considerable interest from many strategic buyers and investors, management has determined that none of these parties are likely to complete a transaction before late Q4 of 2016. This timing and the continuing cash needs of the Company has created a liquidity deficit which prevents the Company from continuing its daily operations.”
The letter continued, “As a result, we have no choice but to stop operations and not process any new bookings as of September 27, 2016. At this time, all employees of LeisureLink are being terminated and the platform turned off.”
For vacation rental managers who have not been paid, LeisureLink has agreed to undertake an Assignment for Benefit of Creditors (“Assignment”), which is a process designed to manage an orderly disposition of the Company’s assets and to distribute those proceeds to creditors according to their legal rights and priorities. As required by law, the Assignee will be mailing notices of the Assignment to all creditors in the next 30 days, providing further information about the Assignment and providing creditors with a proof of claim form through which creditors can file a claim for any obligations due.
Patricia Dalton
February 11, 2017 at 12:10 am
Years ago, before I ever heard of Leisure Link, Flipkey tried to sign me up for their “free” site, where they collected the funds, held them, then released them 24 AFTER the guest arrives. I thought then, that was absolutely insane. This company, Flipkey, that is impossible to reach on the phone, is located who knows where, is going to be taking in what? 100K a day and holding until guests check in, not a week prior to check in, but after they checkin? This is a disaster waiting to happen.
For 1
They should release the funds after they receive them. Period.
2. If they are going to keep them, then they should release them to the owner 2 weeks prior to arrival.
Why? Because if Flipkey goes the way of Leisure line, which is every bit conceivable they will – AND I SO WISH VRM would research their financial stability and the what safeguards they have in place to protect the property owners money they are wrongfully holding – the individual vacation home owner can refuse to give access to the guest.
Why is this a good idea?? Because the guest paid with a credit card and they can then get a refund from the Credit card company, and then pay the property owner. The credit card companies will go after Flipkey.
They way it is now, it will be individual property owners screwed, holding dates, guests arriving, before payment is received, then flipkey promising payments that never come…. like Leisure Link did, meanwhile raking up more dollars.
The guests can’t complain to their credit card companies because with few exceptions the property owners won’t put them on the streets.
Flipkey powers that be, will have run off with the money…. or miss spent it.
BookingPri
September 28, 2016 at 9:25 pm
Speaking as a former LL employee, BookingPal is not a re-brand of LL. It was a competitor. Not the same C-level employees. Not sure where this person is getting their information, but it’s totally inaccurate
BookingPAL is not your pal
September 29, 2016 at 2:47 pm
no previous commenter.. it is not inaccurate information. Its a fact and public information…a kindergartner could figure this out. All the way at the top, the former President of Leisurelink, Richard Barajas, is now an adviser for BookingPal. I dont believe I would want anyone that helped steer a company into despair advising me on a damn thing. whether he was a current executive or not is irrelevant. A company doesn’t go down in five minutes…its an evolution of piss poor decision making and that very well goes back to the tenure of Richard Barajas and many other idiotic people. He was the President in December 2013
BookingPAL is not your pal
September 28, 2016 at 3:16 pm
MyBookingPal.com appears to be the refaced version of Leisurelink.com. Dont be fooled. Just do some basic internet research and one will quickly ascertain that this is one big sh-t show coming out of tech startup USA-Irvine, CA
Its the same old crowd with a new logo slapped on it…They were even too pathetic to update the website layout or characters in their product demo videos from the now defunct Leisurelink site. I guess they figured with the old site no longer viewable that it would be impossible to make this discovery. Its convoluted so be careful…when the debts get too high for them to service the scenario will be the same. just fold up, rebrand under a new fancy logo and carry on. Follow the executives…same executives and staff at Leisurelink will be the new prized and welcomed CEO and team of the new startup. Again,that is until they run this one in the ground and the cycle will begin once again. Much like the life of a flea cycle.