A while back I pointed to a soap opera of a story on the Yellowstone Club World crack-up. The high-living husband was splitting from his high-living wife and it was throwing a wrench into the finances.

Apparently that was just the start of the troubles. Now that they’ve run headlong into a credit crunch, Yellowstone Club World filed for bankruptcy. If you read the AP story linked here it paints a story of an overextended company run by a guy who lives as big as the billionaire members: yachts, planes, Aston-Martins, and Bentleys for a start.

The club was initially just one ownership club in Montanta, but then Tim and Edra Blixseth started “an international replica of the Montana enterprise but with a steep $1.5 million buy-in fee. Over the next two years Tim Blixseth bought a chateau in France, a golf resort in Scotland, a villa in Mexico and an estate in the Caribbean.”

The Mexico part of that equation was Club World Tamarindo in the Costalegre region of Mexico, south of Puerto Vallarta. The club pulled out of that arrangement and it’s now just El Tamarindo Beach & Golf Resort. (Which is good news if you want to be a guest there–it’s less complicated now.)

This shows, once again, the perils of investing big bucks in a project where you are a member rather than a real owner of real property. This is the second major bankruptcy among luxury ownership clubs, after the crash of one marketed by Abercronbie and Kent a few years back. Tread carefully.