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October, 2024

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Mammoth bankruptcy???

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levi.
Posts: 123 - Karma: 1,346
Talk about a bonerkill...

Jul 2 2012 9:20PM
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NinetyFour
Posts: 8650 - Karma: 13,409
Wow is everyone selling out?

Jul 2 2012 9:22PM
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freeskibum82
Posts: 6355 - Karma: 5,055
i wouldnt really call it selling out. They had a subpar season due to snow and the economy has hit luxury sports hard. Lets be realistic, skiing is expensive. So when families stop taking trips and spending the 10k a weekend, resorts have no choice. I'd like to read more about this lawsuit, any links?
Jul 2 2012 9:26PM
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Brenone
Posts: 4944 - Karma: 296
http://latimesblogs.latimes.com/lanow/2012/07/mammoth-lakes-bankruptcy.html

Heres another article.

It's the city of Mammoth thats filing for bankruptcy not the resort itself. I hate to say it but it looks like they were in the wrong. Who decides they want to re-develop an airport and doest look at the FAA requirements first.
Jul 2 2012 9:35PM
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levi.
Posts: 123 - Karma: 1,346
Oops didn't read close enough. I wonder what changes we'll see next year
Jul 2 2012 9:43PM
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Furrer92
Posts: 784 - Karma: 341
yah it said at the bottom of the article that like 75 employees were let off in the spring but that seems to be the only impact on the actual mountain
Jul 2 2012 10:01PM
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lepowski
Posts: 137 - Karma: 96
http://www.saminfo.com/news/article.php?tid=5867 june mountain is out
Jul 2 2012 10:02PM
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Funnel
Posts: 7815 - Karma: 1,531
Yeah guys, the ski area isn't doing real well, but it has not filed for bankruptcy. A thread came up about this lawsuit a few months ago and it looked doubtful for Mammoth Lakes then. This doesn't come as a surprise to me, but it should be interesting to see how this affects the plow budget, utility maintenance, and other city-related expenses.

Touching up on other posts, the mountain laid off many employees over the course of this season, some having been there for decades. It's sad. You will see no difference in the park and season length this coming season though. They claimed to close June to create a new business plan so it's not losing the $1.5 million it has been losing since Mammoth acquired it. It may also be a way to lessen the resistance of June Lake residents to change and growth of June Mountain.
Jul 3 2012 12:00AM
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Fun_dip
Posts: 2623 - Karma: 913
Is it just that the usual expenses of the city outweigh the income the city would usually have from visitors/skiers?
I tried to read the full article in Mammoth Times, but I can't read for shit right now. I feel straight retarded atm sorry
Jul 3 2012 12:13AM
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Funnel
Posts: 7815 - Karma: 1,531
Lawsuit for tens of millions of dollars against a developer, developer won, and the town was already tight on money, making this a huge hit.
Jul 3 2012 12:24AM
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2_fadez
Posts: 7780 - Karma: 4,183
mammoth is just too far out of the way for many families, and especially for people in california, the economy isnt doing well enough to fund weekend family ski trips. pcmr, breck and vail are all at least in fair proximity to large cities so people are more inclinced to fly in and have a nice place to shop and stay
Jul 3 2012 10:00AM
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*valkyrie*
Posts: 229 - Karma: 51
And on top of all this now the town is in a battle with the Los Angeles Department of Water and Power over the rights to Mammoth Creek. I guess they think they haven't taken enough of the water rights in the eastern sierra already.

And the actuality of the situation really doesn't lend itself to be solved by skier / tourist visits. $43 million dollars wasn't going to get paid off by visitors spending money in town, at least anytime in the near or foreseeable future. It was the town's fault for not looking into the FAA regulations before signing the contract with the developer, they then tried to basically weasel their way out of paying. It sucks, but the town ultimately got what it had coming.
Jul 3 2012 11:50AM
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Canepski
Posts: 335 - Karma: 26
Mammoth mountain isn't going any where. The town itself is definitely feeling the economy. A lot of the shops and restaurants have been closing for the past few years. The Mountain its self make way to much income a year to file for bankruptcy. The only people that will really feel this way will be the locals.
Jul 3 2012 3:15PM
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grown-ninja
Posts: 3031 - Karma: 175
Not necessarily at all- you could be making a good amount of money in terms of revenue i mean 100's of millions a year and still file for bankruptcy.  If you're profitable most likely you will restructure and come out of XI allright. ex.... If your current and long term liabilities out way assets or your current ration is terrible saddled by current liabilities you might have a problem...if a ski resort (ie. mammoth) make 225m in revenue annually, they could still have a huge net loss due to operating costs-cupple that with a few bad seasons/economy and a huge LTD here come chapter XI
Jul 3 2012 3:44PM
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Holte
Posts: 10740 - Karma: 7,816
Nice job with that airport...
Jul 3 2012 4:35PM
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