Almost three months before Villa Vie Residences suspended operations on Tuesday, leaving residents of the “never-ending” cruise stranded in Cambodia, the company had already warned the Odyssey’s residents that it was running out of money for fuel.
In an August 1 memo to residents labeled “urgent,” Villa Vie CEO and founding partner Kathy Villalba asked residents for financial contributions to buy fuel.
The memo, which Business Insider reviewed, said the company needed to make “immediate and creative operational decisions to preserve the voyage.”
The company behind the 509-cabin ship had promised a permanent life at sea and a voyage around the world every three-and-a-half years for its residents. That came to an abrupt halt on Tuesday, when residents were told to disembark with only a few hours’ notice.
In a Tuesday statement announcing it had halted operations, Villa Vie said it had taken “significant steps to reduce fuel consumption” after prices rocketed following the onset of the US-Israel war with Iran in February, but that these steps had not been enough.
Villa Vie founder Mikael Petterson told Business Insider in a phone call on Wednesday that the fuel price surge triggered a “cascading effect” that culminated in the suspension of operations.
Financial pressures became clear to residents in April, two months after the war in Iran began, when Villa Vie asked residents to loan the company money, offering interest rates of 12% to 24%, according to a separate letter viewed by Business Insider.
And by August, Villa Vie had reached a “critical point,” according to Villalba’s message, which you can read in full below.
Villalba, Petterson, and Villa Vie did not respond to multiple requests for comment from Business Insider.
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