Ski area bankruptcies

[VTKilarney]

I’m going to just say it.

Our economy is fucked.

Look for lots of ski area bankruptcies in the coming months. Some won’t even make it through the summer.

 

[thebigo]

I'm curious, which ski areas operated this year that will not operate next?

 

[Rowsdower]

What? Why? Because they lost a week or two at the end of the season where the majority of their customers would have been season pass holders anyway?

The only issue I see is if next season people are strapped for cash and they suffer a loss of business then. But I don't see why anyone will not be open for next season.

 

[legalskier]

Many areas had very early openings- Hunter and Blue opened well before Thanksgiving (Blue 4 to 5 weeks earlier than usual)- then they lost two or three weeks on the back end. So they got about the same length ski season as usual but it just shifted earlier. Plus, the major holiday periods they rely on weren't busts. I'd be surprised to see any well managed area go under due to the early closings.

https://www.mcall.com/news/local/mc...0191112-lvjulpa3gzdpxeb64hdktx4cgu-story.html

 

[VTKilarney]

Season pass sales are going to crater.

 

[Rowsdower]

Season pass sales are going to crater.

That's true but isn't it the big consortiums that rely more on season pass sales?

 

[BenedictGomez]

Look for lots of ski area bankruptcies in the coming months. Some won’t even make it through the summer.

I'll take the UNDER.

If this had to happen, it happened at a relatively decent time versus the cyclical nature of ski industry revenue. If this causes someone to go Chapter 11 in July, they probably would have gone belly-up in a year or two anyway.

 

[thebigo]

Grandpa escaped the nazis in Krakow and skiied until he was 98, died two years later. Dad broke his leg in hillmans and hiked out, still limps today 50 years later. Talked to dad yesterday, he was just home from market basket and wanted to know if I was bringing beers this weekend. We will all ski next year and are due a good year.

 

[NYDB]

Use your TrumpBucks (tm) to support your local hill. If you're too 'rich' to receive any TrumpBucks (tm), you should have some shekels lying around. Use those to support your local hill.

 

[VTKilarney]

I’m shocked that people are so optimistic. Within a week or so nearly every state will be under a stay-home mandate. The economic fallout of this is going to be unlike anything we have ever seen. The service sector is going to experience massive layoffs, which will have a domino effect.

 

[NYDB]

I guess it depends on how long you think shit will be fucked up. If we are rolling as normal come summer, I don't see it being as bad as you think. I think most people who ski have disposable income. If they have disposable income and are smart, they have an emergency savings fund.

If we are still on lockdown in August then you'll probably be right.

 

[MikeDeJ]

I’m shocked that people are so optimistic. Within a week or so nearly every state will be under a stay-home mandate. The economic fallout of this is going to be unlike anything we have ever seen. The service sector is going to experience massive layoffs, which will have a domino effect.

I agree with you to a point. We are not there yet. If we do put everyone in a lock down for an extended period you are right. The depression in 1929 had 25% unemployment we will be there if a lockdown happens. it will bankrupt the states unemployment, then the state etc... I agree ( in my opinion ) with everything CT has done so far, but a lockdown's collateral damage maybe greater then the Covid-19 itself. The Covid-19 is serious but hysteria has taken over. We have taken some drastic steps let it be where we are. The public is in fear of the virus and what the government is going to do next. Im not a dark person, not a conspiracy guy. but we dont at this point have to make a move every day.

Lets pray we dont get there and we are back on the boards in Oct!!

MikeD

 

[icecoast1]

Next winter will be key. If a lot of people arent skiing becaus of the economy and it happens to be a warmer winter, that could mean a lot of issues. Resorts can get through this situation right now as long as it's only short term

 

[ScottySkis]

It going to effect every person and business
I not guessing on ski area close
I already have 3 friends who lost their jobs yesterday

 

[trackbiker]

A lot of the smaller and eastern ski areas were only too glad to close. With mostly season pass holders skiing this time of year they were probably in a negative cash flow situation and actually saved money by closing early.

 

[TyWebb]

Next winter will be key. If a lot of people arent skiing becaus of the economy and it happens to be a warmer winter, that could mean a lot of issues. Resorts can get through this situation right now as long as it's only short term

Furthermore .. if this virus comes back in fall/winter many will go bankrupt. A good financial gauge will be super pass sales spring/summer 19 vs spring/summer 20. Obviously expecting this year to be lower but if it is drastically lower that will be a good indicator.

 

[skiur]

A lot of the smaller and eastern ski areas were only too glad to close. With mostly season pass holders skiing this time of year they were probably in a negative cash flow situation and actually saved money by closing early.

This......many smaller places will do better this year since they had to close early. If by the end of summer this is still going on then season passes may not be bought and then if it goes into fall they lose more.....then I could see places going bankrupt. If this is all cleared up by the end of spring, then its probably a positive money wise for small places that had to close a few weeks early.

 

[Bosco DaSkia]

I’m shocked that people are so optimistic. Within a week or so nearly every state will be under a stay-home mandate. The economic fallout of this is going to be unlike anything we have ever seen. The service sector is going to experience massive layoffs, which will have a domino effect.

 

[slatham]

Season pass sales will be significantly impacted until we are on our way out of this thing. And obviously summer business, but how dependent are areas on this, especially the small independents that are most vulnerable (Bromley would get hurt, but not Magic)

The length and severity are key, especially as it pertains to next December - that is a long way off.

IF a relatively short lock down - say 3 months - the economy should rebound very quickly with significant pent up demand and fiscal and monetary stimulus. While many people will be digging themselves out of a financial hole for sometime, this will likely not pertain to the majority of the skiing demographic - or at least not enough to stop them from skiing.

The serious and real risk is a much longer lock down.

In fact one could make the argument, depending upon how this plays out, that seasonal, hourly US workers will be more readily available and perhaps cheaper next winter.

But looking past tomorrow is pure, unadultered speculation during the most unprecedented situation of our lifetimes.

 

[tumbler]

I’m shocked that people are so optimistic. Within a week or so nearly every state will be under a stay-home mandate. The economic fallout of this is going to be unlike anything we have ever seen. The service sector is going to experience massive layoffs, which will have a domino effect.

When this is over there will be pent up demand for consumers to spend by shopping and eating out. Travel will come back, especially within driving distance which puts VT, NH and ME in good position. I also think that people will rally around the service industry unemployed to help them through this. Yes, I am on optimist but I also think that America (including myself) are finally realizing how serious this is and is probably a preview for the future.