Peak Resorts Financial Woes Mounting
Layoffs, furloughs, and other cost cutting measures have been enacted.
Tuesday, April 26, 2016,

As first reported on News earlier this month, Peak Resorts is struggling to cut costs as it enters the off season, following a rough winter, EB-5 funding issues, and mounting debt.

Wildcat and Attitash
Wildcat, April 16, 2016
Wildcat, April 16, 2016

The plug has been pulled on Wildcat's season, just a day after stating they were hoping to operate into May. In recent weeks, multiple long tenured, year round employees were let go at Wildcat and Attitash. Employees from Mount Snow were on site at Wildcat later in the month.

Mount Snow
Mount Snow's Bluebird Express, March 27, 2016
Mount Snow's Bluebird Express, March 27, 2016

Furloughs have been enacted at Mount Snow, according to VTDigger. Mount Snow refused to say how many employees are affected.

Meanwhile, the West Lake snowmaking project is in jeopardy due to EB-5 delays. Mount Snow broke ground on the project in May 2015, reportedly fronting $12 million with the expectation that at least $30 million of EB-5 immigrant investor funds would be released from escrow last year. With the Jay Peak-Q Burke alleged EB-5 Ponzi scheme grabbing national headlines, it is not known when Mount Snow's $52 million of EB-5 funds will be released from escrow.

Mount Snow has been reportedly using Senator Patrick Leahy's office to put pressure on the EB-5 situation. Senator Leahy has come under fire in recent weeks due to his involvement with the Jay Peak-Q Burke situation, including joining Jay Peak officials on fundraising junkets, lobbying for Jay Peak, and accepting $10,800 in contribution from Jay Peak management. After championing the EB-5 program and subsequent extensions, Senator Leahy is now calling for reform or the termination of the EB-5 program.

Meanwhile, after purchasing Hunter Mountain for $36.8 million and the poor 2015-16 season, Peak Resorts' free cash account was nearly halved year to year by the end of January. With long term debt of $118 million, much of it at 10% interest, it's not known if Peak Resorts can obtain additional debt to fund off season operations. Peak Resorts' fiscal year ends on Saturday.

When speaking about the Mount Snow EB-5 situation, Mount Snow President Dick Deutsch stated, "I'm very concerned. I'd be foolish not to be concerned."

  • Mount Snow Says Furloughs Are Unreleated to EB-5 Delays - VTDigger External link

  • Related Stories on
  • Southern Vermont Lift Construction in Home Stretch - October 16, 2022
  • Loon, Mount Snow Name New General Managers - March 16, 2022
  • Lift Incident at Wildcat - January 8, 2022
  • Vail Curtails Crotched Mountain Operations Amidst New Hampshire Struggles - December 30, 2021
  • Three New New Hampshire General Managers - October 21, 2021
  • Vail Announces Four New Lifts for 2022 - September 24, 2021
  • Fire at Mount Snow Mountain Operations Building - June 5, 2019
  • State Permitting Hampers Vermont Projects - August 20, 2018
  • Wildcat Co-Founder Brooks Dodge Passes Away - January 23, 2018
  • Ski Season to Start Before End of Week - November 7, 2017

  • More Information
  • Mount Snow on
  • Wildcat Mountain News on
  • Mount Snow on
  • Wildcat Mountain on

  • comments powered by Disqus
    Copyright 2014-, All Rights Reserved