Court papers show Avatar Tours filed for Chapter 7 bankruptcy
Avatar Tours, a small company that took visitors to the Grand Canyon, filed for Chapter 7 bankruptcy liquidation after taking deposits from dozens of people across the world.
According to court papers, Brenden and Sean Delaney formed the company last year, boosting sales from $156,000 to $304,000 this year by operating a pair of 15-seat vans. The service earned good reviews at websites like tripadvisor.com from people who did not want to travel in a full-size bus.
However, the cash flow dried up after Avatar ran afoul of government safety officials. After failing one inspection by the Federal Motor Carrier Safety Administration, the company was restricted to driving inside Nevada. However, the Mohave County Sheriffs office in Arizona caught the company going to the Grand Canyon afterward.
After failing another federal inspection, the company was ordered out of service in August, federal records show.
The bankruptcy lists zero dollars in assets and $36,000 in liabilities. The creditor listings were dominated by more than 100 people from across the country, in the United Kingdom, Australia, Indonesia and other countries that had booked tours for several hundred dollars each.