Huge Losses for Disney Vacation Club
Wednesday, March 18th, 2009The timeshare arm of the Walt Disney Company, is experiencing huge losses now that it has lost its access to a long standing line of credit it had been tapping to raise cash by selling bundles of its timeshare mortgages it issues to individual buyers.
Disney sold $17 million in Disney Vacation Club memberships in its last quarter compared to $41 million one year ago. With Disney being forced to carry the timeshare mortgages as opposed to cashing them out will end up slowing Disney Vacation Clubs earnings and growth.
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