Grand Resort Properties Bankruptcy Update

By: Destination Club News
Date: March 4, 2010

Late in January, Grand Resort Properties filed for bankruptcy, the first in 2010 for the destination club industry. Brad Brown, Grand Resort Properties' CEO and Founder, told us that the club is developing a new business model and listening to other opportunities, including the possibility of a merger or acquisition with another destination club, but as they continue to move forward, we wanted to take a look at their Chapter 11 filing.

According to their voluntary petition, Grand Resort Properties estimates between one and 49 creditors, citing estimated assets and liabilities both between $1 million and $10 million.

Listed in the top 20 creditors with unsecured claims are the Beaver Creek Lodge Condominium Association, Elite Management Company, Lutz & Co., and Washington Mutual amongst others. The club believes that funds will be available for distribution to unsecured creditors.

If you would like to review the petition yourself, please follow the link below.

Grand Resort Properties Chapter 11 Bankruptcy Petition

We have spoken to multiple destination clubs who are interested in acquiring some or all of Grand Resort Properties. Mostly notably, one of the industry's leading players has been in contact with the club and a new upstart club with destination club ties is also in the mix.

We hope that Grand Resort Properties can reemerge to the destination club sector through the new club model they are developing or through some form of a business combination with another club in the sector. Check back soon for more news about Grand Resort Properties as it becomes available.

Joining a destination club should not be considered a financial investment, but you should closely monitor the club's financial footing prior to joining to assure yourself of the security of your refundable membership deposit. If you would like to receive a free list of suggested due diligence questions pertaining to the financial elements of joining a destination club and many other important decision areas, request a copy of our Destination Club Guide.