A handful of the properties listed on Inspirato’s website. (Screenshot)
Embattled travel club Inspirato has cut staff and named a new CEO, days after being granted a reprieve from the latest threat that it could be delisted from the Nasdaq.
The company, based at 1544 Wazee St. in downtown Denver, said in a Tuesday news release that it was undertaking a “reduction in force” of 15 percent, and has also secured a $10 million investment.
Inspirato did not respond to a request for comment from BusinessDen regarding how many employees were let go. But the company said in January 2023, after cutting 12 percent of its staff, that it had about 800 employees remaining. Inspirato laid off another 50 employees in July 2023, according to the trade publication Skift. If 750 remained, a 15 percent cut works out to about 110 people.
At least some of the affected employees learned they were being let go on Monday, according to numerous posts on LinkedIn.
Inspirato leases high-end vacation homes and makes them available to its members. The company’s main Inspirato Club membership costs $7,800 a year, although Inspirato’s website currently advertises new members can get a second year for free. The company had 10,800 subscriptions at the club level as of June 30, and 1,900 subscriptions to the pricier Inspirato Pass tier, which costs $30,600 a year.
Inspirato went public through a SPAC deal in February 2022. After a brief surge, shares have since shed nearly all their value, despite efforts such as a 1-for-20 reverse stock split last October.
The company has been told multiple times by the Nasdaq stock exchange, most recently in late May, that it could be delisted due to its low market capitalization, or total value of its public shares. Inspirato said in a SEC filing last week that the Nasdaq has now given the company until late November to regain compliance.
In addition to cutting staff, Inspirato is also jettisoning some of the properties it leases. The company had 420 “controlled residence accommodations” as of the end of the second quarter, down from 500 one year prior.
Inspirato said Tuesday it lost $15 million on revenue of $67 million in the second quarter. The company had revenue of $84 million in the same period a year prior.
Inspirato said that private equity firm One Planet Group is investing $10 million in the company in exchange for $2.9 million in new shares of stock, or $3.43 per share. One Planet Group founder Payam Zamani has been named CEO of Inspirato, as well as board chairman.
“With a fresh perspective, a simplified approach and improved cost structure, I look forward to achieving our goals sooner than previously expected,” Zamani said in a statement.
Zamani is the company’s third CEO in a year. Brent Handler, who founded Inspirato in 2011 with his brother Brad, was the company’s CEO until September 2023, when he was replaced by Eric Grosse, a former Expedia executive who had been on Inspirato’s board. Brad Handler has been serving as board chairman.
One Planet’s investment is coming in two stages. An initial $4.6 million investment closed Tuesday, according to Inspirato, with the remaining $5.4 million investment expected to close next month.
Shares of Inspirato closed Tuesday up 4.6 percent. The company disclosed the layoffs and One Planet Group investment before markets opened, and disclosed second-quarter earnings after they closed.
A handful of the properties listed on Inspirato’s website. (Screenshot)
Embattled travel club Inspirato has cut staff and named a new CEO, days after being granted a reprieve from the latest threat that it could be delisted from the Nasdaq.
The company, based at 1544 Wazee St. in downtown Denver, said in a Tuesday news release that it was undertaking a “reduction in force” of 15 percent, and has also secured a $10 million investment.
Inspirato did not respond to a request for comment from BusinessDen regarding how many employees were let go. But the company said in January 2023, after cutting 12 percent of its staff, that it had about 800 employees remaining. Inspirato laid off another 50 employees in July 2023, according to the trade publication Skift. If 750 remained, a 15 percent cut works out to about 110 people.
At least some of the affected employees learned they were being let go on Monday, according to numerous posts on LinkedIn.
Inspirato leases high-end vacation homes and makes them available to its members. The company’s main Inspirato Club membership costs $7,800 a year, although Inspirato’s website currently advertises new members can get a second year for free. The company had 10,800 subscriptions at the club level as of June 30, and 1,900 subscriptions to the pricier Inspirato Pass tier, which costs $30,600 a year.
Inspirato went public through a SPAC deal in February 2022. After a brief surge, shares have since shed nearly all their value, despite efforts such as a 1-for-20 reverse stock split last October.
The company has been told multiple times by the Nasdaq stock exchange, most recently in late May, that it could be delisted due to its low market capitalization, or total value of its public shares. Inspirato said in a SEC filing last week that the Nasdaq has now given the company until late November to regain compliance.
In addition to cutting staff, Inspirato is also jettisoning some of the properties it leases. The company had 420 “controlled residence accommodations” as of the end of the second quarter, down from 500 one year prior.
Inspirato said Tuesday it lost $15 million on revenue of $67 million in the second quarter. The company had revenue of $84 million in the same period a year prior.
Inspirato said that private equity firm One Planet Group is investing $10 million in the company in exchange for $2.9 million in new shares of stock, or $3.43 per share. One Planet Group founder Payam Zamani has been named CEO of Inspirato, as well as board chairman.
“With a fresh perspective, a simplified approach and improved cost structure, I look forward to achieving our goals sooner than previously expected,” Zamani said in a statement.
Zamani is the company’s third CEO in a year. Brent Handler, who founded Inspirato in 2011 with his brother Brad, was the company’s CEO until September 2023, when he was replaced by Eric Grosse, a former Expedia executive who had been on Inspirato’s board. Brad Handler has been serving as board chairman.
One Planet’s investment is coming in two stages. An initial $4.6 million investment closed Tuesday, according to Inspirato, with the remaining $5.4 million investment expected to close next month.
Shares of Inspirato closed Tuesday up 4.6 percent. The company disclosed the layoffs and One Planet Group investment before markets opened, and disclosed second-quarter earnings after they closed.
