Greek Peak---SOLD

Heading in the right direction

Jim Luba was also left go, which is rather interesting, given that he was moved from the Welcome center to the Lodge to serve as administrative assistant to the incompetent G.M.  It appears that Gayle Kryger took over Jim's title of administrative assistant.

Interesting developments

I see they are selling rooms again through Groupon.  Unbelievable!  Let's pay the highest comission in the industry to Groupon, maintain high rates through their own website, and then wonder why there is so much wear and tear on the place, with little profit.  The new owners need to hire a hotel management firm to get the place on track, since they have no experience in this industry.  The next thing you know, there will be a Best Western flag flying out front.

Rj1972 wrote

I see they are selling rooms again through Groupon.  Unbelievable!  Let's pay the highest comission in the industry to Groupon, maintain high rates through their own website, and then wonder why there is so much wear and tear on the place, with little profit.  The new owners need to hire a hotel management firm to get the place on track, since they have no experience in this industry.  The next thing you know, there will be a Best Western flag flying out front.

That would be fine with me----unload that boat anchor and consentrate on the hill. One less distraction = better skiing for us.

so if cfo is gone and some accountants who's minding the store?
At least former cfo knew the business. Are the new owners using  a company accountant from their construction biz?
Not exactly the same thing.

hopefully someone that wont allow them to get into 50 million in debt---not sure you could call that "knowing the biz"

Yeah, I wonder if the new owners are using one of their own controllers to oversee the place.  I know that Samantha and J.D. are still employed.  Looking at how small the new owners existing businesses are, maybe they centralized the supervision of their accounting/finances.  Regardless, I was surprised to see Tom go.  He tried his best to keep the place solvent, despite the Kryger's boondoggles over the years.

I ran Greek Peak accounting, through finder and came up with an article, I did not previously read. It's from back in Feb. and gives a little insight. Seems the FDIC wanted to streamline operations at Greek and eliminate any fat... I don't know if there is/was that much fat to be cut. (I could never figure out where Greek has those 1,000 employees - unless 600 of them are part time seasonal ski instructors or something). Perhaps the recent moves of making AL an "Advisor", and letting the CFO and a couple of accountants go was a move to save money and streamline operations?

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&ved=0CCwQFjAA&url=http%3A%2F%2Fwww.cortlandstandard.net%2Farticles%2F02082013n.html&ei=ITGUUcHsG5DM0gHwhoEw&usg=AFQjCNHyDztFyY38hHaiQZ7wPeUtRIa6SQ&sig2=hfaUiMZGoxGsYa__A9x3mw
Greek Peak was anxious to make the FDIC comfortable with an auditor, but was concerned by the price increase in switching from American Resort Management to BDO, said Wendy Kinsella, a lawyer with the firm Harris Beach based in Syracuse representing the resort.
American Resort Management’s services cost $6,000 a month, while BDO would cost $4,000 a week, Kinsella said.
“The person who’s actually paying for it is the FDIC,” said Johnson. “The FDIC is willing to pay it.”
Suggestions from the FDIC on how to reduce expenses have met with resistance from Greek Peak’s management, Johnson said, and the FDIC wants to stop giving advice and have BDO find fat in the operation and cut it.
BDO was also credited with finding a potential purchaser for the resort. Around 20 groups have asked for purchasing information for the Virgil resort, which includes the ski center, Hope Lake Lodge and adventure center, said Greek Peak President Al Kryger after the hearing, and four or five have come to inspect the resort.

That is a rather interesting article, which must have passed by my radar, as well in February.  What I can add is that GP hired BDO on their own right after the FDIC assumed the assets from Tennessee last winter.  The Kryger's terminated their agreement with BDO several months later, as BDO was unsuccessful in restructuring the debt (eg, finding new investors or new financing) for the Kryger's, HLI, Peak, etc.  interestingly, BDO has been successful in financial matters with other ski resort operators.

In terms of American Resort Management, I am somewhat familiar with them, and would not have selected them to oversee or provide any degree of management advice whatsoever.  They are a small outfit located in Erie, Pa-- not exactly the epicenter of the ski resort industry.  They have some resort experience, but are very much generalists in the hospitality management and consulting industry.

I still think the new owners have bitten off more than they are expecting.  Bills add up fast, and they do not know the hospitality or commercial recreation business.

Rj1972 wrote

 
I still think the new owners have bitten off more than they are expecting.  Bills add up fast, and they do not know the hospitality or commercial recreation business.

That may be true, time will tell. That said, they certainly can't do any worse than the old ownership, no??

Does anyone know how well the 2013-14 season passes have been selling?

I was really excited about the change in ownership.  So, after years of being a daily lift ticket customer, I finally purchased season passes for me and the family.  $299/season seemed like a pretty good deal to me.

I haven't heard, hopefully they're going gang busters for them.

299 is a GREAT deal to be able to ski GP---the place skis just a little bit bigger than it really is.

$299 is a silly low price, but sure to build some goodwill among past and potentIal customers.

Yes, Camp, only time will tell.  I wish the new owners much success.

Looks like Greek is getting some new Low e snowguns from HKD snowmakers
(in past years 2011 & 2012 the grant was for "Both mountains will receive (5) HKD SV10 Snowmaking Towers"

I dig it

had a conversation with one of the groomers over the weekend. He finally had the chance to sit down with the new owners and get to know them bit. he coudln't give any specifics but did mention good things are headed our way.

keeping the GP faith

checked the website. it is for 5 sno guns valued at $40k. should help a lot.

Here's the press release:

http://www.nsaa.org/media/150531/2013_NSAA_Sustainable_Slopes_Grant_PR.pdf

As a kid Greek Peak seemed like it stretched from one end of the world to the other.  This huge playground of ski lifts and trails, a place I could easily go anywhere I wanted (as long as it wasn’t closed), a ten year old dropped off do it anything you wanted.

With three or four dollars in my pocket I could pick up a warm can of chef Boyardee out of a vending machine in the ski lodge as well as a soda to get amped up alittle more.  Just like today I never really wanted to waste time sitting around posing in the lodge.  It was much more fun to crank out run after run.  

Skiing in the rain, chasing the last patches of snow near the end of the season, skiing in the darkness of night.  I’ll never forget ronnie’s run. The stories a middle school kid heard about why it was called that.    Who really knows to this day.  Getting booted off the t-bar or was it a poma over and over because my scrawny legs couldn’t keep me upright more than halfway up the line.  Getting laughed at by other people as I fell head first.  My parents standing in the cold at the bottom the lift to watch me ski.  

As a twelve year old I was sure I was the best skier on the mountain.  Getting tossed and losing a ski. Sliding on my butt down an ice covered black diamond.  Racing through the woods on a little trail.   Being jealous of friends who had season passes and private lockers.  My parents signing me up for rental skis and punch passes instead of buying me what I “needed”

Sometimes I wonder if I’m the only one who grew up in the fantasy world of greek peak.    The icy runs, hot dogging.  The night some guy ran into lift pole on zeus I think.  My parents realization that it might be alittle dangerous.  What was just another activity in my busy young life eventually became a constant after a few detours.  Chasing an October to May season only to give in by early summers dawn.  Where decents are measured in thousands instead of a couple hundred feet at  a time.  Where lines exist for endless miles in all directions.

Greek peak seems like small mole hill to me these days sort of a run down little place.  The funny thing is I know the magic that exists there.  My barely visible memory, gives me glimpses of how much fun it was to be a kid and not really have a concern about anything other than riding the lift back up to come on down again.  That fifteen minute car ride from the house, along back roads to nowhere, brought me somewhere.  

What a wonderful post, Frank.  I was taken back in time with all of your memories of the good old days, as a child at GP. I think that's why many of us have moved on to the Vail's and Stratton's of the world, only to return back to GP.