Denver-based luxury vacation travel company Inspirato said Tuesday it will cut 15% of its workforce and receive a $10 million capital infusion from a Bay Area private equity firm to turn things around.
One Planet Group LLC, founded by technology entrepreneur and investor Payam Zamani, has agreed to invest $10 million in exchange for 2.9 million common shares and an equal number of warrants.
Zamani will take over as CEO from Eric Gross and become chairman, succeeding Brad Handler, a role he has held since founding the company with his brother, Brent, in 2010. Zamani plans to appoint three new directors to the seven-person board.
The company said it would immediately cut 15% of its workforce and renew or terminate leases on unproductive vacation properties in an effort to cut $25 million in annual costs.
The company, headquartered at 1544 Wazee St., employs about 630 people, of which about 95 will be laid off.
“The decision to reduce our workforce was not an easy one, but we appreciate the hard work and dedication of the entire team and are confident that under Payam Zamani’s leadership, Inspirato will continue to deliver world-class travel experiences to our members,” Inspirato president David Callery said in a news release.
Inspirato offers members access to luxury villas, stays in luxury hotels and resorts, and custom-designed itineraries that include safaris.
The cuts mark the company’s third in two years as it struggles to maintain its membership base after years of rapid growth. Brent Handler stepped down as CEO last September.
The company on Tuesday reported second-quarter revenue of $67.4 million, down 20% from the same period a year ago. Inspirato’s net loss was $15.4 million, down from a net loss of $46.7 million in the same period a year ago. The 2023 figure includes special non-cash charges of $30.1 million.
Inspirato went public three years ago and was trading at more than $17 until late last year. But this year, except for a brief spike in late July, the stock has mostly traded below $4. The company’s shares closed at $3.59 on Tuesday, up 4.7% from the previous day.
The company’s shares have fallen and it was at risk of being delisted from the Nasdaq stock exchange, but Inspirato said earlier this month that it had been given until Nov. 22 to comply with listing requirements.
First published: August 13, 2024, 5:02 PM
