Embattled Ambassadors International has sold its travel and events division to Lakeview Equity Partners for $500,000 in cash.
As part of the purchase agreement, Lakeview also assumes approximately $3.8 million in liabilities, according to a Securities and Exchange Commission filing.
The sale is part of a larger plan Ambassadors announced in February to sell off all assets except Windstar Cruises.
Also, the sale comes less than a week after Ambassadors filed its annual report, in which the company stated it might seek bankruptcy protection if it doesn’t start selling assets.
The sale of Ambassadors’ travel and events division to Lakeview, a Milwaukee-based private equity fund, was effective April 16, Ambassadors said. The travel and events business offers conference-management services, incentive travel, event housing services and event registration.
The travel and events division reported revenue of $14.9 million for the year ended Dec. 31, 2008, compared with $14.5 million in 2007. Year-end operating income for the division was $2.6 million, compared with $1.4 million in 2007.
"The board and management are pleased to have completed this transaction," said Art Rodney, Ambassadors chairman and interim CEO. We will continue to focus all of our capital and efforts on Windstar Cruises and the small-ship luxury segment."
Rodney has served on the company’s board since April 2008. He has held executive positions at Princess Cruises, Crystal Cruises and Disney Cruise Line.
Ambassadors still owns river cruise ships that once sailed for the defunct Majestic America Line, and its marine business, which includes marina design, manufacturing and construction services.
The story was updated with financial details of the sale.