NJ.com reports that the owner of Mountain Creek is “seeking Chapter 11 protection,” which, if granted, would allow Mountain Creek Management LLC to restructure its debt while remaining open.
The CEO of the company, Jeff Koffman, issued a statement that explained the bankruptcy filing was in response to “legacy debt we inherited from the property’s former owners.”
While filing for bankruptcy isn’t something to downplay or ignore, it should be noted that Chapter 11 isn’t necessarily a death sentence for corporations – in fact, it’s more often than not a chance to restructure current business practices, and realign goals and best practices to achieve future success. The Mountain Creek filing will not result in any job losses.
This week’s news comes in a climate of resort consolidation, following news from across the country of smaller resorts being swallowed up or driven out as larger resorts and corporations make huge land buys. Earlier this year, it was reported that Aspen Skiing Co. would purchase Mammoth Resorts and its four subsidiary California ski resorts, right on the heels of the announcement of its $1.5 billion purchase of Intrawest Resorts.
In the summer of 2016, Vail Resorts made headlines when it announced the purchase of Whistler Blackcomb for $1.06 billion, making it the owner of the two largest ski resorts in North America.
Alongside Vail’s gargantuan purchase, Powdr sent shockwaves through the industry when it announced the purchase of Eldora Mountain Resort, giving it a strategic advantage in the region when combined with their existing ownership of Copper Mountain.
Although the winter of 2016/17 gave resorts record snowfall and one of the best seasons in recent years, the lack of snow in previous winters is still being felt by smaller resorts struggling to stay afloat.
Check out more resort news here: