Description

The Lusso Collection filed for Chapter 11 bankruptcy in December 2008 and is currently going through this filing process.

The main memberships had unlimited usage of the clubs properties, although this was subject to the clubs reservation policies which limit the number of "Standard" (within 1 year) and "Advanced" (between 1 and 2 years) reservations. All members were guaranteed one holiday period reservation every year and outside of holiday periods were guaranteed one annual vacation style of their choice.

In order to balance out usage of it's properties at peak times, Lusso also limits the number of members with school-age children to approximately 35% and also tries to get a geographic balance of members. This, combined with it's low member to home ratio of 5.5:1, means that the homes are expected to be occupied no more than about 55% of the time on average.

Lusso had stated that to provide members with financial security, all the clubs real estate interests are held by subsidiary LLC's owned 100% by the Club. Lusso pledges ownership interest in these LLC's to a trust set up to benefit the members. It also has an annual independent audit, sends semi annual financials to members and 85% of its membership deposits are used for real estate or held in cash.

After 18 months of membership, the membership can be sold back to the Club for 100% of the original amount paid. 

Homes vary from 1,600 sq ft 2 bedroom apartments in New York City to 6 bedroom, 5,200 sq ft beach homes. All the clubs US properties also include a luxury vehicle.