Haystack / Hermitage news

[Vaughn]

Shows just how hard it is to do in this state the right way

Sent from my LG-H820 using AlpineZone mobile app

No, that's really not what this shows at all. This shows what happens when you undercapitalize a business from the start.

 

[djd66]

Shows just how hard it is to do in this state the right way

Sent from my LG-H820 using AlpineZone mobile app

No, it shows that there are a lot of dishonest scumbags looking to screw people.

 

[Rienq]

Oh, interesting

 

[mbedle]

 

[NYDB]

Too bad they are going to miss out on a great spring skiing season.

It would have been nice sipping Kir-royale's on the deck at the lodge fer sure

 

[VTKilarney]

“Hermitage Club Director of Public Relations Meridith Dennes said the club intends to be open this weekend.”

This seems like a long shot.

 

[sull1102]

This happened last Thursday as well. Apparently they made a payment and got the okay to open this past weekend. Not part of the story Friday was the police escorting employees away from the property like what reportedly happened yesterday when they were shut down by the state for the second time in four days. One has to wonder how many more times these people will be allowed to do this by the state, the party must be over by now.

Sent from my LG-H820 using AlpineZone mobile app

 

[VTKilarney]

You also have to wonder how many more times they can scrounge up these payments.

 

[Vaughn]

You also have to wonder how many more times they can scrounge up these payments.

I know nothing about the players here but my understanding is that there are some very deep pocketed people who are members and investors in this place, people who are used to and probably enjoy swimming in the deep waters of finances and takeovers. Based on that assumption, I assume there are some backroom schemes being hatched as to the best time to resolve this. If we assume there are members who like this concept of a private ski club but want Barnes out of power, then there has to be a sweet spot where his management of the club will be terminated without much conflict but before assets start getting seized by the state or local authorities. Seems like with the season largely over, these investors would do well to withhold financial support until Barnes is gone and then get it sorted out over the summer.

 

[drjeff]

I know nothing about the players here but my understanding is that there are some very deep pocketed people who are members and investors in this place, people who are used to and probably enjoy swimming in the deep waters of finances and takeovers. Based on that assumption, I assume there are some backroom schemes being hatched as to the best time to resolve this. If we assume there are members who like this concept of a private ski club but want Barnes out of power, then there has to be a sweet spot where his management of the club will be terminated without much conflict but before assets start getting seized by the state or local authorities. Seems like with the season largely over, these investors would do well to withhold financial support until Barnes is gone and then get it sorted out over the summer.

Bingo! The majority of the members want Barnes 100% out. He apparently doesn't want to leave and knows that he's not wanted back, and is trying to get as much $$ out of the members via whatever scheme he can devise to make it happen. Basically a big game of chicken going on, where the majority of members don't want to see assets of the club being liquidated and sold off by the bank(s).

Given that short of a few members who apparently use the gym facilities in their clubhouse regularly, and the fact that they club was approaching the season end of ski operations in the next few weeks and then goes pretty "quiet" until about Memorial Day when the golf course traditionally opens up, likely lots of behind the scenes negotiating will continue to be happening for the next 2 months or so....

 

[VTKilarney]

That will work only if the deep pocket savior investors can come up with an agreement that will protect any additional investment. Call me crazy, but I don't believe that anyone is willing to lose millions just to protect their much lower existing investment at Hermitage.

 

[Domeskier]

That will work only if the deep pocket savior investors can come up with an agreement that will protect any additional investment. Call me crazy, but I don't believe that anyone is willing to lose millions just to protect their much lower existing investment at Hermitage.

Agreed. I doubt that many of the members have the financial resources to save the place on their own and those that do aren't going to sink more money into the place just to save the value of some second home. Probably the shallower pocketed members will have to band together in sufficient number and force a buy out if they want to keep the place going and preserve their property values. Maybe they can recruit one of the deep pocketed members to get on board after they get a firm proposal on the table.

 

[Vaughn]

Agreed. I doubt that many of the members have the financial resources to save the place on their own and those that do aren't going to sink more money into the place just to save the value of some second home. Probably the shallower pocketed members will have to band together in sufficient number and force a buy out if they want to keep the place going and preserve their property values. Maybe they can recruit one of the deep pocketed members to get on board after they get a firm proposal on the table.

Is the club at capacity though? I was thinking the idea was that some fat cat stabilizes the place while also reseting the business model so they can finish selling to capacity and get out of the secondary real estate stuff Barnes has dragged the club into. Maybe I have my facts wrong but I thought a lot of money was frittered away on stuff which was not core to the club business.

 

[Domeskier]

Is the club at capacity though? I was thinking the idea was that some fat cat stabilizes the place while also reseting the business model so they can finish selling to capacity and get out of the secondary real estate stuff Barnes has dragged the club into. Maybe I have my facts wrong but I thought a lot of money was frittered away on stuff which was not core to the club business.

Don't know. I agree that they probably need to change the business model from making money to running a club. But since running a club is not really a money-making venture, it is unlikely that a single well-heeled member would take on this largely altruistic burden. To overcome the coordination problem, they need a sufficient number of members to step up and agree to foot the bill for changing the club's direction. However, that will likely cost a lot more per member than most of rank and file anticipated when they signed up, since it won't be subsidized by expansion and real estate.

 

[ThinkSnow]

Shut down

https://www.google.com/amp/s/vtdigger.org/2018/03/20/state-shuts-hermitage-club-unpaid-taxes/amp/

 

[FBGM]

Hahaha lol’s.

Shocker some private rich ski area failed in the most depressing corner of the state. Good thing they got that 6 pack bubble lift for all 7 people thenski there

Best case, they liquidate. Mount Snow follows suit and sells that shit hole as well and people realize that area sucks and go ski north or west.

Off to put $100 bills in my fireplace to keep warm.

 

[MG Skier]

So, there may be some new/used lifts for sale?

Unless someone with truckloads of $100 bills pays off all debts, buys it etc.....what a mess. Wish I was part of the millionaire club, but not that mess.

 

[drjeff]

Hahaha lol’s.

Shocker some private rich ski area failed in the most depressing corner of the state. Good thing they got that 6 pack bubble lift for all 7 people thenski there

Best case, they liquidate. Mount Snow follows suit and sells that shit hole as well and people realize that area sucks and go ski north or west.

Off to put $100 bills in my fireplace to keep warm.

The amount of utter hate you display time and time again for other people is really quite sad. I sincerely hope that one day you can get past this and grow to not despise and/or judge some of your fellow humans that you come off as doing here.

May you be able to enjoy some good turns this weekend

 

[VTKilarney]

Nobody who truly cares about skiing should be happy to see a ski area go NELSAP.

 

[drjeff]

Nobody who truly cares about skiing should be happy to see a ski area go NELSAP.

Spot on!