High Country Club Bankruptcy One Year Anniversary

By: Destination Club News
Date: January 26, 2010

"Effective immediately, High Country Club will no longer be in business."

Those words led a message sent to the 375 members of High Country Club from club CEO and Founder Christian Kirschner just over a year ago today, and today marks the one year anniversary of the club's Chapter 7 bankruptcy filing.

"Along with our bankruptcy attorneys, we are in the process of filing Chapter 7 bankruptcy next week," the message would continue.

"The severe decline in the economy has made it impossible to operate our business. Our team has worked tirelessly over the past 120 days to restructure and save the business. However, multiplying outside factors and a declining membership has made operations impossible."

"Effective immediately all reservations are canceled."

"We expect that the bankruptcy court will be in contact with members after our filing next week. I offer my sincerest apologies and regrets as the current business and economic environment has made it impossible for HCC to operate."

Within days of the announcement from High Country Club, Yellowstone Club World, the destination club industry's most expensive club, would also file for bankruptcy. These early 2009 bankruptcies would reinforce the focus of many of the clubs in the sector from growth to sustainability.

Quintess, the world's third largest destination club, had already put into motion a new structure that would have members' annual dues and fees cover their travel expenses with sales and marketing efforts covered by the non-refundable portion of the members' deposits. "Philosophically, one of the things we really wanted to accomplish in 2009 was to show stability in an industry and economic environment that showed a lot of signs of instability," President Greg Eure told us earlier this year. Ultimate Escapes, the second largest club, had just reached out to members of their destination club for a one-time assessment that would raise $16 million that would "help strengthen the club for long-term sustainability in an unprecedented economic environment." Exclusive Resorts, the world's largest destination club, would start a new format that will make them self-sufficient without new membership sales beginning next year.

The 375 High Country Club members were approached by several rival destination clubs, most notably Ultimate Escapes and Distinctive Holiday Homes, with offers to join their clubs at preferred rates. In time, both Paragon Destinations and The Phoenix Club would be created as possible landing spots for the members of High Country Club, both clubs designed around the restructuring of High Country Club in one form or another.

While the destination club industry has been drastically altered in the past year, little has changed in regards to High Country Club. The bankruptcy is still in the hands of the courts but one of our sources has told us that it is in the "final stages."

If you are a former High Country Club member and would like to comment on your experiences with the club, please feel free to contact us at contribute@destinationclubnews.com. Check back frequently for more news on High Country Club and the rest of the destination club industry.