Wintergreen Cutting Jobs in Response to Financial Challenges

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Updated: 2:54 PM Feb 8, 2012 Wintergreen Cutting Jobs in Response to Financial Challenges Two days after reporting serious financial challenges due to an unseasonably warm winter, Wintergreen Partners, Inc. says the resort will eliminate or restructure 12 jobs in an effort to save money. Posted: 2:50 PM Feb 8, 2012 Email Address: news@newsplex.com Wintergreen Statement

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February 8, 2012

Two days after reporting serious financial challenges due to an unseasonably warm winter, Wintergreen Partners, Inc. (WPI) says the resort will eliminate or restructure 12 jobs.

In an official statement issued Wednesday afternoon, WPI said the company is "implementing a number of measures intended to generate revenue and save approximately $1.5 million in annual operating expense".

Among those measures:

- Wintergreen began mailing 2013 dues renewal notices to its 1,700-plus members on Feb. 7 instead of the previously scheduled date of June 1. The company hopes to generate $3 million to $3.5 million in cash to offset an estimated $4 million to $4.5 million revenue shortfall.

- Wintergreen will eliminate or restructure 12 jobs at the resort in an effort to reduce annual labor and benefit costs by $600,000.

“Of all the steps we’ve considered in dealing with our current situation, there is nothing nearly as difficult as informing associates who have made contributions to Wintergreen that they no longer have a job. It affects them, their families, and ripples through the community. It is a very painful process to go through,” said Wintergreen general manager Hank Thiess.

WPI is also considering other cost-saving measures that include adjusting operating hours of some resort amenities and limiting the use of consultants and contractors. In addition, a new $6 million private debt offering will be presented to investors next month.

WPI reports the warm winter weather has left the resort with an estimated $2.5 million revenue shortfall through the end of January. Officials say continuing warm temperatures could create $1.5 million more.

Furthermore, WPI reports Bank of America terminated the resort's $3 million line of credit on Feb. 2 due to "financial covenant violations arising from reduced December revenue and income".

In the meantime, officials say resort facilities and amenities are open and operating on normal hours. Snowmaking operations are underway, and Wintergreen says the best trail conditions of the season are upcoming.

Latest Comments

Posted by: Bill Location: Hammerstein on Feb 26, 2012 at 10:04 AM

Hey Ace, stay home.

Posted by: Ace Location: Charlottesville on Feb 9, 2012 at 09:55 AM

Here is one measure you can take to generate revenue; get rid of the restrictions on your "season pass". Then I will buy one and come to your resort. Otherwise I will never step foot there again.

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