A Florida-based vacation rental company, IPG Franchising, has filed for Chapter 11 bankruptcy, following months of investigation into numerous complaints from property owners, renters, and investors. The company, which also operated under the name Island Attitude, is accused of failing to pay out owed funds and providing little to no communication regarding investments and bookings.
Key Takeaways
- IPG Franchising has filed for Chapter 11 bankruptcy, listing over 80 creditors.
- Investors and property owners claim the company owes them significant sums of money.
- The company’s assets are estimated to be less than $50,000, with liabilities between $1 million and $10 million.
Growing Fallout for IPG Franchising
IPG Franchising, known for attracting investors to purchase contracts for managing vacation rentals, has been under scrutiny for months. Property owners, like Terri Darr and Alan Bush, reported not receiving thousands of dollars owed to them for bookings. Renters, such as Ron Jewell, also claimed they were not refunded for accommodations damaged by Hurricane Milton.
Investor Nightmares
The situation is particularly dire for investors who poured substantial amounts into IPG Franchising. Jane Sonkin, who moved her family from Canada to Florida after investing $274,000 for 10 rental property contracts, stated she has not received payments in months and estimates a loss of over $200,000. Similarly, Olga Billat from France invested over $250,000 for 10 vacation rental contracts but reports receiving minimal payouts and now has "zero information" about her franchise.
Legal Battles and Bankruptcy Filing
These allegations have led to multiple lawsuits filed against IPG Franchising by investors, property owners, and even companies acquired by IPG. The litigation spans across Florida. In a recent development, IPG Franchising filed for Chapter 11 bankruptcy. The filing reveals estimated assets under $50,000 and liabilities ranging from $1 million to $10 million, with over 80 creditors listed.
Company’s Defense
Attorneys representing IPG have previously attributed the company’s financial difficulties to the COVID-19 pandemic and multiple hurricanes that impacted Southwest Florida, causing "significant financial setbacks and losses." They stated that the company was working diligently to resolve legitimate claims and reach amicable resolutions for pending lawsuits, though an immediate full resolution was not possible due to severe losses.
Gulf Coast News continues to follow this developing story as the bankruptcy proceedings unfold.
Sources
- More complaints, lawsuits against Florida vacation rental company, Gulf Coast News and Weather – Southwest Florida News.
- Florida vacation rental company files for bankruptcy, Gulf Coast News and Weather – Southwest Florida News.