Destination Club Anniversary: Rob McGrath Loses Abercrombie & Kent Brand

By: Destination Club News
Date: August 19, 2010

Five years ago today, the destination club sector changed drastically when Rob McGrath, the inventor of the destination club concept, lost the valuable Abercrombie & Kent name, forcing him to rebrand his clubs virtually overnight as Tanner & Haley Destination Clubs.

In July of 2003, McGrath and his inaugural club Private Retreats entered into an agreement with Abercrombie & Kent that created Private Retreats by Abercrombie & Kent. In February of 2004, the master brand Abercrombie & Kent Destination Clubs was formed, serving as the heart of the club's marketing efforts for just over two years.

McGrath's clubs had grown increasingly dependent on short term leases as part of their structure, eroding their financial position and ultimately leading to the club's inability to meet the licensing fees obligated to Abercrombie & Kent. On August 19, 2005, the club and A&K announced that they would discontinue their agreement.

"We have reached a natural conclusion to this partnership with the sellout of our first two clubs," said Rob McGrath, referring to his two leading destination clubs Private Retreats and Distinctive Retreats. "The two clubs will continue to operate as they have in the past with no changes. Having just launched Legendary Retreats, a Tanner & Haley Destination Club, we are now focused on expanding the Tanner & Haley brand and its unique identity."

From the Abercrombie & Kent side of the equation, Geoffrey Kent said, "Our long term business strategy now requires that we maintain full control over our valuable brand name."

In less than a year, Tanner & Haley filed for bankruptcy. Increased competition, large debt obligations, and consumer confusion regarding the brand change all contributed to the club's collapse. The sector was overhauled. Ultimate Resort acquired Tanner & Haley and became the industry's second largest club. Ultimate Resort and Private Escapes would announce their own merger in 2007, creating the combined brand Ultimate Escapes.

Like many different industries, the destination club space is cyclical. Abercrombie & Kent would make their way back to the sector with the introduction of the Abercrombie & Kent Residence Club, launching as an equity based club to distance themselves from the club that had formerly used their name. After years outside the sector, Rob McGrath has also made his return, serving as an executive at the new exchange based club, Demeure.

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