BOSTON — Controversial luxury cruise company Vantage Deluxe World Travel announced Thursday it filed for Chapter 11 bankruptcy protection and is falling under new ownership.
United Travel Pte. Ltd., an affiliate of Nordic Hamburg and Heritage Expeditions, has agreed to acquire Vantage’s assets and “provide customers with future opportunities” for travel, the company said in a news release.
But what does that mean for Vantage’s debt and the hundreds—possibly thousands—of customers who say Vantage owes them for cancelled trips?
“There’s a chance they’re going to see their money,” said Woburn bankruptcy attorney Dax Grantham. “There’s not a high chance they’re going to get everything back.”
Grantham said Chapter 11 is a reorganization of debt and is better for consumers than Chapter 7, in which a company admits it can’t make regular payments towards its debt and ceases to exist.
“They’re working with their creditors to try to come up with a plan to help the business survive,” Grantham said. “The [new buyer] acquiring the assets wants to continue using the name and the intellectual property of the company they’re acquiring. If that’s the case, they may not want the bad publicity of all these [Vantage] customers saying, [’You owe me money’].”
Vantage has been under fire for months after hundreds of consumers complained about a lack of refunds for cancelled or postponed trips. The Mass. Attorney General’s Office said it has received at least 1,120 consumer complaints against Vantage since January 1, 2020.
“Right now, our office remains focused on resolving consumer complaints and securing refunds for affected customers,” an AG spokesperson said in an email.
Earlier this month, the company quietly told its employees all trips through Aug. 28 are postponed, according to an internal memo obtained by Consumer Rescue. Vantage laid off its workers last week.
However, Boston 25 obtained a Vantage email that shows the company was still contacting its consumers about future trips as recently as June 26.
“When the complaints from those poor customers were coming in, [Vantage] is still sending out emails to get people to pay for future trips that are never going to run. Where did all that money go?” said Steven Grasso, owner of North American Traveler in North Reading.
Grasso said Vantage owes him $30,000 for services provided by his company. Grasso blasted the Mass. AG’s Office for not doing more to protect consumers.
“I’m more angry at the Mass. [Attorney General] than anybody,” Grasso said. “Vantage has made no statement and the Mass. Attorney General’s Office did not step in and do anything to inform the public.”
This is a developing story. Check back for updates as more information becomes available.
Download the FREE Boston 25 News app for breaking news alerts.
Follow Boston 25 News on Facebook and Twitter. | Watch Boston 25 News NOW
©2023 Cox Media Group
/cloudfront-us-east-1.images.arcpublishing.com/cmg/7QOJU3BNCJERBNKJC5LWTBYFLU.png)
