A Central Florida-based vacation rental company, IPG Franchising, has filed for Chapter 11 bankruptcy this month, following a wave of lawsuits from investors who claim they have not received promised payments. The company, which attracted investors to purchase contracts for managing vacation rentals and handling payments, now faces significant financial distress.
Key Takeaways
- IPG Franchising has filed for Chapter 11 bankruptcy.
- Investors allege delayed or stopped payments, with some reporting losses exceeding $200,000.
- The company lists over 80 creditors and between $1 million and $10 million in liabilities against less than $50,000 in assets.
- The owners also operated Island Attitude, a rental management company impacted by Hurricane Milton.
Investor Grievances Surface
Investors in IPG Franchising have come forward with serious complaints, stating that the company has either delayed or completely ceased making payments. Jane Sonkin, an investor who relocated her family to Florida after investing in the company, reported being out over $200,000. "It’s a huge amount of money. It’s our life savings. It’s money that was taken away from my children," Sonkin told Gulf Coast News. "There’s no properties anymore. There’s no communication. We are left with nothing."
Financial Woes and Legal Troubles
The bankruptcy filing reveals a dire financial situation for IPG Franchising. The company has listed more than 80 creditors, with liabilities estimated to be between $1 million and $10 million. However, its reported assets are less than $50,000. This financial strain has led to a growing number of lawsuits against the company.
Connections to Other Businesses
Records indicate that the owners of IPG Franchising, Graham and Jamie Greene, are also associated with other companies, including Island Attitude on Manasota Key. This company managed vacation rentals in the area before it was significantly impacted by Hurricane Milton. Property owners and renters associated with Island Attitude have also reportedly claimed they are owed money.
Company’s Defense
Attorneys representing IPG Franchising have previously attributed the company’s financial difficulties to external factors such as the pandemic and hurricanes, citing these as causes for "significant financial setbacks and losses."
Sources
- Florida-based vacation rental company files for bankruptcy, Yahoo Finance.
- Florida vacation rental company files for bankruptcy, Gulf Coast News and Weather – Southwest Florida News.