After being hit with a triple whammy as 2012 began, executives are exploring new fiscal options for the Virginia property.
With the help of advisory firm Alvarez & Marsal, Wintergreen Resort, in Wintergreen, Va., says it is taking the necessary steps toward financial recovery.
Wintergreen began the year on shaky ground, thanks to several factors: a warm winter that reduced ski traffic; Bank of America pulling the resort’s $3 million line of credit, and a tax-credit dispute with the state over a conservation easement, reports The Nelson County (Va.) Times.
Vice President and Chief Financial Officer Rob Sullivan released a statement that described the possible steps the resort could take in the future.
“The response to the marketing efforts has been very positive, as interested parties recognize that the resort has a loyal and committed membership, a first-class group of enthusiastic employees, and a singular four-season experience to offer to guests and members,” Sullivan wrote.
Options include a potential sale of all or part of the resort, a joint venture with another entity, a recapitalization of the resort’s balance sheet, or any combination of the three.
C&RB reported on Wintergreen’s battle to overcome previous financial challenges in 2010, after unseasonably warm winters and a default on a $10 million debt tied to a new hotel project (http://www.clubandresortbusiness.com/2010/11/01/making-food-beverage-sing-at-wintergreen-resort/). Wintergreen pulled out of that slump with help from members and by hiring Hank Thiess, a 25-year veteran of the destination resort and recreation industry, from Durango (Colo.) Mountain Resort, as its new General Manager.
This year, Wintergreen sent renewal notices to its 1,700 members for 2013 about four months earlier than usual, bringing in $4.1 million. The campaign resulted in $500,000 more than was expected.
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