All Resort Group, large Park City transportation firm, suddenly closes
Employees are being let go as investment group opts against acquiring the company
September 15, 2017
All Resort Group, Inc. a large, long-established Park City transportation firm, closed early Thursday evening, an executive said, one of the most notable local business failures since the depths of the recession.
Gordon Cummins, a minority owner of All Resort Group and the firm's vice president, said on Friday the closure impacted several hundred employees like drivers and office workers. All Resort Group suggested the employees file for unemployment benefits, Cummins said.
"We're deeply disappointed and we feel for our employees. We wish our employees well," Cummins said.
The firm in late April filed for bankruptcy protection in U.S. Bankruptcy Court in Salt Lake City under Chapter 11 of the federal bankruptcy code. A Chapter 11 filing is voluntary and is meant to allow a company to reorganize with the intention of paying debts. The filing listed between $10,000,001 and $50 million in estimated assets and the same dollar range in estimated liabilities. It was estimated in the filing there were between 200 and 999 creditors, including a leasing firm, a Las Vegas touring firm and an Ohio petroleum company.
Cummins said an investment group in Phoenix had implied it would acquire All Resort Group, Inc., with an arrival planned on Thursday to meet with managers of the transportation firm and walk through the facilities. Cummins said the investment group contacted one of the attorneys working on the bankruptcy indicating it had opted against a deal. The group "withdrew their intent to do an acquisition," Cummins said. The deal fell through Thursday morning, he said.
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The investment group did not have experience in the transportation industry, influencing the decision, Cummins said.
He said he hopes another firm will acquire the All Resort Group airport service within the next 30 days.
At the time of the April filing, Cummins said All Resort Group intended to stay in business and no layoffs were planned as a result of the filing. Cummins at the time described a series of financial issues that led to the bankruptcy petition, including amassing hundreds of thousands of dollars in attorney bills tied to lawsuits as well as owner mistakes in everyday business decisions. The firm "got hit with a perfect storm," he said in April. The filing was made after a strong stretch of business, he said, noting the January, February and March quarter was the best in approximately four years. Cummins said in the spring All Resort Group could emerge from bankruptcy as early as January, after a reorganization that would have simplified accounting practices.
The firm's offices on Kearns Boulevard were not staffed Friday morning. Some sections of the offices appeared to have been abandoned but other sections looked as though they were still manned. Several vehicles with markings of firms under the All Resort Group corporate umbrella were parked outside. The firm's website did not work Friday morning and a phone call to the main number was not answered by a person.
Business failures as consequential as All Resort Group have been rare in Park City since the worst days of the recession, when the property-management industry notably had difficulties.