Bankruptcy Filed for CCWP, Foxfire
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Avestra Golf Management has filed Chapter 11 bankruptcy for the Country Club of Whispering Pines and Foxfire Resort & Golf Club.
Avestra owns or manages The Country Club of Whispering Pines, Foxfire Resort and Golf Club and Southern Pines Golf Club. Southern Pines Golf Club is not part of the filing, according to Woody Davis, president and CEO of Avestra.
(Because of an editing error, the front-page story in Sunday’s edition of The Pilot said that Southern Pines Golf Club is also owned by Avestra. In reality, Avestra leases the golf course, pro shop, halfway house and driving range from the Southern Pines Elks Club. The Pilot regrets the error.)
"There is no hidden agenda and we are not trying to get rid of anything," Davis said in a phone interview Saturday. "This is all about getting things moving in the right direction."
Davis stressed that the filing would have no effect on memberships, staff or operations of the affected clubs.
"Everything is going to be just like it is now," Davis said.
In an e-mail sent to members of the Country Club of Whispering Pines, Davis wrote that "the negative economic environment in which we have been operating for the past couple of years has placed tremendous pressure on our company. ...we have engaged what I believe are some of the brightest minds in the legal and business world, for their expertise and advice. With their leadership, and our current financial restructuring, we will redirect our company in a positive direction.
"This being said, due to some events (on Thursday, May 20) that were out of our control, it became necessary that the ownership of CCWP, LLC (Country Club of Whispering Pines) and FFG I, LLC (Foxfire Resort & Golf Club) had to file under Chapter 11 bankruptcy (reorganization)."
In an article published on May 9 in The Pilot, Davis said CCWP had not been sold and announced the relocation of Avestra's corporate offices from CCWP to Southern Pines Golf Club.
Contact Tom Embrey by e-mail at tembrey@thepilot.com.
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Comments
CSmithson 3 years ago
"Southern Pines Golf Club, also owned by Avestra, is not part of the filing"
Avestra does not own Southern Pines Golf Club. The Elks own the property. Avestra leases the course and pro shop building.
None 3 years ago
Members have created the bankruptcy because of narrow minded thinking. Many think that they have priviledges when it comes to free food or substantially reduced costs. Woody Davis operates a business designed to experience a profit as with any entrepreneural enterprise.
Members forget that dining experiences are there for convienence as opposed to vested rights or priviledges. Food costs are of little or concern to members who have no concept of what a plate costs to present. From ordering food for a function or menus, preparation costs, building costs, utilities, labor, and waste all impact the cost of * a plate*.
I have seen wealthy couples go to the 91st hole at PCC and order one hot dog, and two glasses of water ~ and leave without tipping.
As I've said numerous times: thank God for Country Clubs, because for the most part, they bleed off those who one would not want to associate with anyhow....
phallet 3 years ago
I believe Toda's comments are, at best, wishful thinking and somewhat demeaning. The real problem for golf course owners is reduced revenue and higher operating costs for all areas of the club particularly golf. F&B is a drop in the bucket compared to lower number of rounds being played. The poor economy has had a big negative impact on revenue as well as increased operating costs for labor and material.
None 3 years ago
Obviously phallet you are referring to CCA where Bob Jr. owns Food and Beverage as well as the courses, which fall under singular management as opposed to lease agreements. My remarks were meant to reflect the true nature of members of small country clubs. Small clubs have been struggling for years primarily because members didn't support them. Rather than having dinner at the club, unless they had a special, members would travel to another location for breakfast, lunch or dinner - until they needed to use the clubhouse for one of their events - like weddings for instance.
bigD 3 years ago
Toda-
First are you saying that because I am a member of a country club I no longer get to choose where and what I eat..I have to eat at the club?
second- You dont know much about PCC. Hot dog and two cups of water $4. Hot dog and lemonade (member special) $3. Tip is added to everything we buy. I think you made up your example.
Its a two way street because us country club yuppies dont want to hang out with you either.
machspeed 3 years ago
Woody Davis is the reason Foxfire Golf Club and Whispering Pines is in the situation they are now, "Robbing Peter to pay Paul" can only last so long.
bigD- you might be able to get something other than the (members special) if you took some of quarters and dimes you play for and put it towards lunch. lol
TooHot 3 years ago
And others come here and decide to build a NEW club. What tea leaves are they reading?
golfmonkey984 3 years ago
machspeed- Very well said! I'm now wondering when the Elks are going to step in and figure a way out of the contract they got weaseled into with Avestra. CSmithson is correct in stating that Avestra LEASES the pro-shop building and the Azalea/Bluebird 9-hole courses. I will say that Avestra has done an amazing job with the course over the last few years...but that is what their deal with the Elks was set up to do...make the golf course better. It seems now that they come in and do work to a wonderfully laid out, Donald Ross designed course...call it the "hidden gem" of the Sandhills area and give out free "golf cards" to anyone that fills out a form. This card entitles a cheaper 18-hole rate than those that are paying Elk membership dues...once again...the OWNERS of the course! I understand that the course was in very bad shape before Avestra stepped in for reasons that I'm not sure of, but I do know that it was a strictly private course, and the Elks did not allow any sort of advertising for the golf. This could be the reason that 3 of the oldest Donald Ross designed 9-hole courses were not very well known outside of Elk members and Sandhills locals, and within the last few years a buzz had been created about the place. I've spoken with current and former Elk members and they wonder why their memberships are declining...sounds pretty obvious to me. Lets not forget that Avestra was also LEASING the course formally known as Hyland Hills before its most recent bankruptcy about a year ago. It's a very sad situation that this recreation facility has found itself in; too many greedy individuals trying to gain profit from arguably the most influential golf course designer in the history of the sport. If you haven't experienced Southern Pines Golf Club (aka: The Elks Club), then you're missing out an unbelievable course that will test all aspects of your game, and show you how beautiful the natural landscape of the Southern Pines area really is. Also keep in mind that the course was designed over 100 years ago...which exposes Ross's pure genius for his time. If you enjoy this place then please make the effort to join the Elks Lodge and voice your opinions on the ongoing situation. The swimming pool at the Elks Lodge has also just gone through some major renovations...another amazing facility that also has great history. The lodge is in need of a younger generation of members to ensure a bright future so it doesn't turn into a house infested, highly played course like many others in the area that are there solely for monetary gain. Southern Pines Golf Club has tradition and class that needs to be respected by all that enjoy the sport, and those that choose to manage places of it caliber.
Poundman 3 years ago
Bottom line is they probably paid to much for the golf courses, that is what happens in most scenarios. If they borrowed the money that is a lot of interest to pay.
Usually there is not a lot of margin between golfing income which is the man source of revenue minus operating expenses which include massive maintenance budgets coupled with a big debt service on a loan.
None 3 years ago
bigD not really...but who supports club resturants? Members no less. Members who chose to eat elsewhere have no club to dine-in for Sunday brunch because operators can't support an operation with an all you can eat buffet. Monday through Saturday is when they need members to eat and pay a reasonalbe price.
Secondly: "Hot dog and lemonade (member special) $3. Tip is added to everything we buy" and I think you are talking about 15% gratuity: Windfall for servers ~ Total Grat - .45 => CCA .225 => Nancy Sadler CM => .03 (.135) = .36. For the SERVER, .09 before taxes! AFTER 15 trips to the table to make guest(s) feel important. Tip Please.
Aw yes, not so much the yuppies ~ the old fogies who come from old money and think because of their position in life, someone owes them something, especially those who "serve" them. CC's should hand out umbrellas to members so that many of them will avoid drowning during rain storms [ie: nose-up-in-the-air].
None 3 years ago
Just a follow up to posters on this thread: Recall that Larry Caddell and his band of 3 is considering purchasing a public golf course - like the one at Little River that was purchased when he was mayor of Carthage. It's in keeping with this situation Woody Davis finds himself. Caddell Golf Club will be at the taxpayers expense....
methco_golfpro99 3 years ago
I worked under Woody Davis' previous company a few years ago, and I must say that yes, he is only trying to turn a profit on these golf clubs, however he approaches this concept in a different, somewhat immoral way, depending on your views. If you will recall, approximately six years ago the former Hyland Hills Golf Club was owned by Mike Zack's management company. Woody Davis also had a hand (however small or large it may be) in Zack's ownership of the club...When Zack's company went bankrupt, Hyland Hills was put on the auction block and was subsequently bought by Old Saybrook Golf Capital. Mike Zack was left to walk away from the sale with his tail between his legs...The source of the problem with why Zack's company went bankrupt was not that a profit was not being turned by Hyland Hills in golf revenues, but more so that Zack wanted to keep his profits for himself and did not want to pay his debts to his vendors and suppliers.
When Mike Zack married into Woody Davis' family, it became more clear that Zack's business practices were more of a family affair, and not so much of his own personal matters. Almost everyone in this family has somewhat "shady" business practices, to some degree or another. The only family member that I ever met who seemed to have any morals was Mike Zack's step-son. The family always tried to be nice to their employees and I was never disrespected, however shady business practices reflect poorly upon employees too, as vendors and suppliers see the employees as being "in the know" regarding what is going on with their company.
To summarize, I agree with 'machspeed' in that it is clearly Woody Davis who contributed to the downfall of these two great golf clubs. My only hope is that these two clubs do not fall victim to the repetitive beatings that Hyland Hills had to go through before finally being able to make a move back towards the top of the local business.
bigD 3 years ago
I agree with Toda...the county should not be buying a golf course and this bankruptcy is thee example as to why not. Golf operations are very expensive and when it cant be run at break even the tax payers will have to pony up..no thanks
libsmom92 3 years ago
Well well well here we go again!!!!! If Woody and his croneys would get out of the way in Moore County then we could get back to the best courses in the United States. They all need to go back where they came from or at least find a new place out of the Sandhills. I know people who have worked for Avestra and for Hyland Hills. The employees at Hyland Hills are still owed "earned" wages. They have never paid up to these loyal employees who went through a lot with the company. Also I know people who have worked for Woody personally who were treated very badly by putting them in the position of having to quit and find other employment. Now lets talk a little about how when Woody wants something at his house he gets it. He has just finished getting several things done at his house and I am sure it cost Woody a bunch of money. I am so glad that all of this is finally coming out so everyone will think twice before working for this kind of company. The really sad thing is that with the job market where it is a lot of people are having to take what they can find just to put food on the table, even if they used to make a lot more money than course help does. I am so worried for all these employees at Foxfire and Whispering Pines. What are they going to do when they never get their monies that are already owed to them. They can't even get to work sometimes now because of how far behind Avestra is with their payroll at both courses. This is a very sad situation and I for one am appalled at the way these people are being treated. They are first class and loyal and now they have to wait for their pay when the management is getting paid no matter what. I haven't even started on the fact that employees at all of these courses had to take a 10% pay cut to keep their jobs. Ok I am done cause I have no more time for this bunch of idiots!!!!!!
None 3 years ago
@libsmom92, Your points are well taken. My son worked for Woody at WPs. My point at the begining was that members had a hand in the demise of Averstra. If members don't support their club, then who will? Woody had money problems before he started at Pinehurst National.
With mismanagement, food costs, payroll, lease obligations, debt becomes overwhelming and owners have to make difficult decisions. It's so sad that all of those hardworking folks have to experience the brunt of decisions they had no choice. My heart goes out to them.
libsmom92 3 years ago
Toda, Your son was one of the lucky ones. He got out! There are so many that can't that it actually makes me want to cry sometimes. I hope your son is better off where is now. I know these faithful and loyal employees are not. Now about the members actually supporting the club, I do agree they should support their club with at least monthly dinners there. If the club doesn't have enough members then you either raise member dues or you can drop the dues to a rate that many others can afford and then you would have less problems with getting the members in there. I know my suggestions would fall on deaf ears but they are what they are, times are hard for everyone not just the clubs.