Ginn Executive Vice President Departs Company
Ginn Company EVP Bobby Masters resigns. Property owners are still in the dark.
Palm Coast, Florida – October 24, 2008 – First, the "Executive Team" page disappears from the Ginn Resorts website. Now one of Ginn’s top executives and fellow South Carolinian also departs. Executive vice president Bobby Masters resigned his position last Friday. Amid several recent staff cuts and realignments, Ginn did not announce any plans to replace him.
Bobby Masters came from Charleston, SC where he and family members own several peninsular Charleston properties. Seldom seen at public functions, Masters was reclusive rather than flamboyant like Bobby’s other long time executives.
The Ginn Company and property owners in several Ginn-developed communities face uncertain futures. Strapped with a high cash burn rate and reduced revenues, Ginn has cut back staff, farmed out development and management of two communities (The BriarRose in the Oconee Valley of Georgia and Cobblestone Park near Columbia, SC) and backed out of a 2009 LPGA tournament commitment in Charleston, SC. Real estate sales revenues are way down and several club members in Ginn communities are not paying club dues.
But the largest issue looming over Ginn is the $675 million Credit Suisse credit facility, currently in default. Negotiations have gone on since the June 30, 2008 default. The credit facility encumbers Ginn-owned properties in four developments:
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Ginn sur Mer – Bahamas
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Quail West – Naples, FL
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Tesoro – Port St. Lucie, FL
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Laurelmor – Boone, NC
While negotiations continue, Ginn has suspended sales activity in all four developments. Each community has suffered layoffs, including Quail West’s long time director of golf.
Toby’s Commentary: In early August, Bobby Ginn began a series of conference calls to property owners in each of his communities. He acknowledged his prior lack of communications, promising to do better. That promise goes unfulfilled, as does his promise to help property owners resell their lots and homes. Foreclosures, unpaid Property Owners Association assessments, and depressed resale prices plague property owners. All have unanswered questions. Many do not know which way to turn and are bitter that help is not forthcoming from the person who sold them the dream. The ultimate marketing machine has become a brick wall. Is the bunker mentality Bobby Ginn’s doing or is company president Robert Gidel calling that shot?
Let’s hope next week’s Ginn sur Mer PGA Fall Tour golf tournament lights up some sales at The Conservatory in Palm Coast, FL.
GINN
Greed is a terrible disease. My Mother was correct when she told me to never bite off more than I can chew.
One and Done
This tournament will be one and done. No sales will result unless under $80,000 for a lot…who would want the burden of carrying the club and grounds.
Masters was actually fired
Bobby Masters didn’t resign…word from the inside was that he was fired 2 wks ago along with a few others.
Ginn and his cohorts
Well, well………why am I not surprised?
Greed and stupidity are deadly combinations. Not having a conscience and compulsive lies are a mental disorder!
We could see it coming and there is not a da– thing we can do about our neighborhood and lives thanks to BG and his "dreams".
Hilton Head Replay????
It seems like it was 25 years ago or so that "Slick Bobby" stiffed a load of people up in Hilton Head in a like manner.
See ya! Down the middle – Golf I
Information
I wonder when Bobby or someone will come out with a statement. They are selling off properties, shutting down sales, not moving dirt in new communities, dropping golf tournaments, firing executives, etc. and they are saying a word.
All people want is information so they can act accordingly. Nothing is worse than being unsure…..
Information
Bobby Ginn is guilty of selling properties at what they were able to be sold for at the current time. But when most of his purchasers were speculators and not people who planned to build, then ultimately where is Ginn to blame? Ginn has closed or will close his "resale" teams soon. He’ll also hand over management(not ownership)to Wyndham in November for Hammock Beach Club, Yacht Harbor and Conservatory. If for some reason they don’t get the deal done, then Ritz Carleton is in the wings waiting to take over management of the said properties. Ginn supplies jobs for this area and will for years to come. Some people love to see him fail, but ultimatly Bobby Ginn will continue to build and build and in the end will come out on top. What bank really wants Ginn Sur Mer? I was there recently and its got one building vertical and it’s 1300 acres of dirt and some swampy canals. The place is far from something any bank would want. Look for Credit Suisse to work with Ginn in the end. Only Tesoro is worth any money. ALL PC properties are safe as without Credit Suisse involved Ginn only carries about 29 mil in debt. Not much at all for a company of Ginns size.
What do you want Ginn to say?
John,
What do you expect Mr. Ginn to communicate to you and to others?
Here is a draft.
"This is a temporary set back and by tomorrow everything will be back to normal.
We are in the high end of the real estate market so we are not part of the sub-prime lending fiasco.
We are reorganizing our team to position ourselves for the next great boom in the high end real estate market.
Value of your investment will be protected and very shortly you will experience increases as high as 20% a month but I can’t say it officially?"
I don’t think you would believe it? Would you John?
Information from jon
That is the type of thing that I think would be good to get out to the people as soon as possible. I haven’t heard anything about Ritz getting involved but that is nice to know.