SEATTLE -- The cash-strapped Uniglobe.com, a full-service online
agency that reportedly was at risk of a shutdown, has found a
solution for continued operations, at least for now.
It outsourced its Web site and travel fulfillment operations to
OneTravel.com and its subsidiary, 11th Hour Vacations. It also laid
off all its staff except the president and one accountant.
Uniglobe.com had said earlier this month that it was seeking to
outsource its operation.
Under terms of the deal, OneTravel.com will provide Uniglobe.com
a private-label Web site and pay fees or a percentage of revenue
earned on sales generated at the site.
Uniglobe.com also announced it renegotiated a portion of its
debts to reduce the amounts owed and to delay some repayments. The
company said its long-term survival depends on successful
completion of negotiations with creditors and on the level of cash
flow generated from the OneTravel.com outsourcing agreement.
The travel franchisor, Uniglobe Travel (International), is the
largest shareholder in Uniglobe.com, but developments at
Uniglobe.com will have "no operational or financial impact" on the
franchisor because the two businesses operate independently, the
companies said.
OneTravel.com, based in East Greenville, Pa., and partially
owned by Amadeus, operates its Partner Program to provide
private-label travel sites for a range of companies. It counts
among its customers Sam's Club and AMC TV. It also powers
11thHourVacations.com, which offers last-minute travel bargains to
destinations worldwide.