The private club is hoping to restructure under Chapter 11.
Friday, May 31, 2019, NewEnglandSkiIndustry.com
Hermitage Club LLC and Hermitage Inn Real Estate Holding Co. LLC filed for voluntary Chapter 11 bankruptcy on Tuesday, with hopes of restructuring and reopening.
According to the Brattleboro Reformer, "Restructured Opportunity Investors Inc. is proposed to lend up to $1.75 million for reorganization at an annual interest rate of 5.5 percent. The plan includes hiring a chief restructuring officer, funding payroll, maintaining resort properties, paying insurance and other fees, and having a meeting with club members where at least 65 percent of them agree to start paying all of their monthly dues."
Hermitage founder Jim Barnes is quoted as stating, "given its state-of-the-art facilities and favorable geographical proximity to millions of potential members, the company can use the Chapter 11 cases to successfully gain access to the additional capital and liquidity necessary to reopen and continue to upgrade the resort and its facilities, reassure and expand its membership base, restructure its balance sheet and negotiate the terms of a plan of reorganization."
Berkshire Bank filed a foreclosure complaint in February 2018, with some $16.5 million owed by the company for its lavish new base lodge. The filing paved the way to the appointment of receiver Alan Tantleff. The bank is hoping to auction off the assets this summer.
Located in the Deerfield Valley near Mount Snow, the Hermitage Club features the Haystack ski area, a golf course, and numerous inns and restaurants. Hermitage founder Jim Barnes acquired the defunct Haystack ski area in October 2011 and soon installed two new SkyTrac fixed grip quad chairlifts. An 80,000 square foot lodge was constructed for 2014-15 and a $7.3 million Doppelmayr heated, high speed detachable six person chairlift for 2015-16. In addition, the ski area also has a CTEC triple and a Poma triple.