Although it’s most of a contintent away, the Yellowstone Club bankruptcy may hold an instructive lesson for Snowshoe, as the Club— according to people quoted in an in-depth June 14 New York Times story— was a successful enterprise until its founder decided to pile on $375 million in debt to take the concept worldwide. Snowshoe, meanwhile, has experienced tremendous growth in the decade and a half that it’s been owned by real estate-centric Intrawest, but in recent years, Intrawest has faltered as real estate values have fallen. Now that Intrawest’s parent company, Fortress Investment Group has been struggling under its own debt-induced troubles, there’s been talk that Intrawest will be broken up. The good news for Snowshoe, if that happens, is that a new owner, hopefully less burdened by debt, will be able to invest in resort operations instead of debt payments.
