Phoenix Club
Resignation and Redemption

When 375 members of High Country Club lost their refundable membership deposits due to the club's 2009 Chapter 7 bankruptcy filing, many inside and outside of the Colorado based clubs grew hesitant of putting down more money to join another destination club.

Created by creditors and members of the former High Country Club, The Phoenix Club looked to rise from the ashes and offer members the same vacation experience but with no membership deposit or annual dues.

Instead, members would pay a variable rate for every week they wished to travel to the club's properties.

"Our plan for reorganization is based upon making the same properties being available for use by the members at a cost less than the annual membership dues paid by the members in 2008," wrote Thomas F. Quinn, the club's Counselor and Advocate. "Our plan does not require existing members to pay any down payment and there are no monthly or annual dues and no hidden fees. However, we must count on four weeks of use from each member. In order to keep your membership, each member will be required to make 4 one-week reservations and pay 60 days in advance of your trip. If you have to cancel we will refund 90% of your payment if another member books the property. If you decide not to pay 60 days prior to your reservation date we will release the property to other members and there will be no cost to you."

The Phoenix Club would need roughly 200 of High Country Club's 375 members to make the club "self-sustaining."

Unfortunately, the club was quick to note the downside of the structure. "You will not get back your membership deposit under this plan, but you will still be a member entitled to use all the properties on a pay as you go basis."

With no membership deposit required to join, there isn't a true resignation and redemption policy for club members outside of the requirement to travel for four weeks per year.

Tied to the High Country Club bankruptcy, how the club will progress is undetermined, but many of the specific details regarding the structure have yet to be published, including how non-High Country Club members could join the club or how members who travel less than four weeks can cure and rejoin the club.

If you are considering joining a destination club, request a free copy of our Destination Club Guide to help you begin the process, complete with suggested due diligence questions and a background about the history of the industry.