All Resort Group, a large transportation firm, seeks bankruptcy protection
Company plans to stay in business after a ‘perfect storm’ of financial issues
THE PARK RECORD
All Resort Group, Inc., a long-established Park City transportation firm with numerous affiliated companies, filed for bankruptcy protection in late April.
The firm made the petition 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.
All Resort Group, Inc. is the umbrella organization for more than 60 affiliated companies, including well-known ones like All Resort Express, 645-TAXI and Lewis Stages.
The bankruptcy filing lists between $10,000,001 and $50 million in estimated assets and the same dollar range in estimated liabilities. The filing did not provide detailed numbers.
The filing indicates it is estimated there are between 200 and 999 creditors. The creditor with the largest unsecured claim is a Salt Lake City company called Hincklease, Inc. It has a claim of $155,118.83 for lease payments, according to the filing. A Minnesota company called HealthEZ has a claim of $126,511.83 against All Resort Group, Inc., the second largest. Other creditors include an Ohio petroleum company and a Las Vegas touring firm. Public bodies like the Utah Department of Workforce Services and the Salt Lake City Department of Airports are also listed among the 20 largest unsecured claims.
None of the 20 largest unsecured claims involve firms with addresses in Park City or surrounding Summit County, although one of the claims, valued at $23,245.52, is tied to a lease of office space on Kearns Boulevard.
Gordon Cummins, a co-owner of All Resort Group and the firm’s vice president, said in an interview the company intends to remain in operations. No layoffs are planned as a result of the bankruptcy petition, but traditional seasonal layoffs will be made as usual, he said.
“Our goal is to stay in business . . . and that’s what we’re planning to do for another 20 years,” Cummins said.
Cummins described a series of financial issues that led to the bankruptcy petition, including compiling hundreds of thousands of dollars in attorney bills tied to lawsuits as well as owner mistakes in everyday business decisions.
“We got hit with a perfect storm,” Cummins said.
He said business remains strong, describing January, February and March, the core months of the ski season, were the best quarter in approximately four years.
Cummins said All Resort Group, Inc. plans to design a reorganization that will include simplifying accounting practices. He said the company could emerge from bankruptcy as early as January.
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The unemployment rate in Summit County dropped below 5% in March for the first time in more than a year, signaling further improvement in the job market. The March reading was the last taken during a full month of the ski season.