Houseboat company collapses into receivership, leaving customers scrambling to recoup thousands

Nearly seven years after being virtually wiped out by flooding, a houseboat company that flourished for decades along a lakefront in B.C.'s Shuswapregion has gone into receivership.

WaterwayHouseboats wasa largely successful business on two acres of beachfront property near the sand beaches of Mara Lake, a few minutes' drive south of Sicamous, untildisaster hit in 2012.

Flooding ravaged the area that June and owners never got back on their feet financially. The company'sbank applied for receivership this week, one year after the company marked 50 years in business.

Now dozens of customers who spent thousands thinking they'd secured a relaxing summer vacation have been left figuring out whether they can get their money back and, if they can, where to book instead.

"This was not a small expense, far grander than anything I've ever spent on a holiday for my family. It was a gift for their birthdays,"said Kamloops' Caren Punton, who dished out$5,000 to plan avacationfor nearly two dozenfamily members this July.

"I've spent a few moments in tears," said Punton, who, like otherWaterwaycustomers,got the disappointing news by email on Monday night.

Catastrophic flooding

Creeks and rivers across the Shuswap area surged over their banks after heavy rain rolled through the area in June 2012. Waterway'sproperty was overcome by murky water, loose timber and other debris, the deep mess powerfulenough to rip sheds from the ground and overwhelm pickup trucks.

The houseboat company sued the province and the District of Sicamous for negligence two months after flood, blaming the devastation on forestry activity in the area. The ownerswere seeking$10 million in damages.

A B.C. Supreme Court justice awarded the company $2 million in damages in April. A statement from the owners posted this week said, "sadly," that amount wasn't enough to recoup their losses.

Customers whobooked their Waterway trip bycredit card, like Punton, are likely to getrefunds in the wake of the receivership move. Others who secured their spot through other avenues like instalments sentby e-transfer over the past few months are facing losses.

"We're talking thousands of dollars invested," said Cody Ginis, who lives in Spruce Grove, Alta., and planned to vacation on the lake with his family.

"Plus, I've got a seven-year-old who, even last night when I was tucking him in, was really excited to go and now I'm breaking his heart."

Sicamous Mayor Terry Rice said the loss will have a heavy effect onemployees,boat owners and other small businesses in a local economy that relies heavily on summer tourism.

The owners of Waterway and the receiver did not respond to CBC's request for comment.