The famed Greenbrier Resort filed for Chapter 11 bankruptcy Thursday, while also announcing the framework of a deal whereby the troubled West Virginia facility would be acquired by Marriott.
According to this Associated Press story, Greenbrier's parent company, CSX, would pay Marriott $50 million to run the resort for the next two years. In return, Marriott would pay CSX between $60 million and $130 million for the property over the next seven years, "depending on timing and the hotel's financial performance."
A number of issues are unresolved, including the Greenbrier's ongoing labor issues (the resort and local unions have been without a collective bargaining agreement for more than a year) and whether the resort will add casino-style gambling (approved in a voter referendum last November) to its roster of activities.
According to the story, "The [bankruptcy] filing estimates the resort's assets are worth between $50 million and $100 million. It owes between $100 million and $500 million to more than 5,000 creditors, including $91 million to CSX."
"This is the finest resort in the world [but] it's down, the employees are down, the hotel is down and I think this is the right move for everybody involved," West Virginia native Sam Huff, a retired NFL linebacker and Marriott exectuive told the Associated Press.