Joystar laid off about half its remaining staff this month, leaving the host agency with no more than five employees, according to current and former employees.
The Aliso Viejo, Calif.-based company owes travel agents thousands of dollars in unpaid commissions.
With so few employees (including some who work from home), it is unclear if Joystar is still manning its Aliso Viejo headquarters.
Hosted agents have been complaining for months about slow or no commission payments. One estimate puts the total debt to agents at more than $450,000.
In recent weeks, staffers have been reassured by top management that a company restructuring or new investors would make it possible to pay debts. Travel Weekly's efforts to contact CEO Bill Alverson and Executive Vice President Kathy West for details were unsuccessful.
Agents are using the Joystar community board to voice their complaints. One posting dated Dec. 17 claimed Carnival Cruise Lines was prepared to cease doing business with Joystar if the agency did not make good to agents. When queried about the posting, Carnival declined to comment.
Joystar agents believe action by Carnival remains a possibility but not until after the holidays.
Joystar agents also have taken their claims to other forums. A number have turned debts over to collection agencies, and a few have talked to lawyers to explore their options.
Some have complained to the California attorney general and to the Los Angeles Better Business Bureau (BBB), but have gotten no satisfaction from either. The agents said the attorney general's office advises they get a lawyer or go to small-claims court.
On Dec. 23, the BBB website tallied 28 complaints in the last three years. An agent who filed her complaint in early December said there were no others at the time, indicating that all the complaints were recent. The BBB listed 25 complaints as closed because Joystar "agreed to perform according to its contract."
The final response from Joystar in each case said, "Joystar will pay the agent's commission as soon as our reorganization is complete," or words to that effect but without indicating when payment might be forthcoming.
Many agents are openly or surreptitiously switching allegiances to other host agencies. A few have established themselves as small consortia or solo operations, but without the services of a host.
Judging from postings at the Joystar community board and emails to Travel Weekly, agents are furious with many suppliers for not permitting them to protect future income by moving bookings for future departures to other hosts. More than one supplier has said to the agents that "Joystar did all the work."
Meanwhile, Joystar employees who were laid off in California in December and in Florida earlier this year have learned their unemployment taxes were not paid to those states. At least some of the claimants are receiving unemployment benefits anyway, and presumably the states will attempt to recover from Joystar.
In the last 14 months, Joystar has been challenged to remain in good standing with travel suppliers and regulators. In November 2007, Royal Caribbean ceased doing business with Joystar, calling it a "card mill."
The company let three state registrations expire, which led the Cruise Lines International Association to cancel Joystar's membership until the registrations were reinstated.
ARC, finding an empty office in Aliso Viejo in mid-November, declared Joystar in "preliminary default" but reinstated the agency a day later after determining the office was staffed.