Friday, Oct. 23, 2009

Golf column: Premier Resorts' exit leaves many out in cold

Golf course owners and management companies up and down the Grand Strand are among the individuals and businesses that have been left out in the cold by Premier Resorts' abrupt exit from the area.

The company, which managed several entities out of its Barefoot Resort offices, including rental properties, a conference center and golf package business, locked the office doors and laid off all of its employees on Oct. 13.

Though it's difficult to calculate a total with so many courses involved, the more than 90 public golf courses stretching from Georgetown to Southport, N.C., are easily owed at least hundreds of thousands of dollars collectively for unpaid golf rounds booked through packages.

"You collect funds, you don't perform service and you lock your doors and leave," said True Blue Plantation head golf professional Bob Seganti. "I haven't seen anything like that and I've been in this market for a long time.

"They went out of business owing us a substantial amount of money, as they did many courses."

In September, Carolina First Bank started foreclosure proceedings and filed a lawsuit against Premier Resorts International, based in Park City, Utah, and the local subsidiary, Premier Holdings of South Carolina LLC, for failing to make payments on two loans worth a total of $6.75 million.

A receiver has been appointed by the court, and Carolina First hired Grand Strand Resorts, run by local resident Phil Pate, to renew operations this past Thursday of some Premier businesses, including a golf package division.

Premier Resorts' failures have incited more calls for a change in the system of payment in the golf package business. Under the current system adhered to by most in the industry, the hotel or package provider accepts payment in advance of packages that include accommodations and golf, and pays the courses after the play takes place, generally within a month or two.

If the company closes before the courses are paid, they have given away free golf.

The sale of Sands Resort properties in 2008 left courses without millions of dollars in payments for rounds.

"It's unfortunate that every year it seems a major provider seems to go out of business owing courses a lot of money," Seganti said. "... It's unfortunate you provide a service to a customer and you can't collect on that."

Premier's crash caught many in the industry offguard, considering it had been a trustworthy business partner to many in the area for years. Seganti knew something was amiss a couple of weeks ago when there was a stop-payment on checks for summer golf rounds.

"They've been a major provider for us and a good business partner for many years," said Seganti, who estimates sister courses Caledonia Golf & Fish Club and True Blue are owed tens of thousands of dollars. "We're currently standing in line trying to figure out how we're going to collect that money."

Barefoot Golf Resort's four courses have probably taken the biggest hit from Premier shuttering. "They were our No. 1 accommodations provider so we're out quite a bit," said Barefoot head pro Mike Ross. "I think it's safe to say [it is six figures]. It's really a bad deal. We've developed a lot of long term relationships with people that worked for them, and we really feel bad for a lot of our friends who lost their jobs over there."

Barefoot Golf Resort's image has taken a couple of hits this year with things out of its control. Wildfires in April destroyed more than 80 homes in the resort as well as wooden bridges on a couple of courses, and now a management and golf package company on the property is in foreclosure.

"It has been a tough year in that regard," Ross said. "A lot of people didn't understand we were separate companies. Premier was one of 12 package providers we deal with at Barefoot.

"It's going to hurt us in the short-term, mainly with PR, but we've jumped on it."

Groups coming to the Grand Strand in the past couple of weeks on fall golf packages booked through Premier have been met with boarded doors and signs at the Premier office, and are saddled with golf packages that are no longer valid. Ross said Barefoot immediately partnered on Oct. 13 with nearby Beach Vacations to rebook the travelers, who are left to work with their credit card companies to receive a refund on the original package.

"Most of the groups have been very understanding and have been great to work with," Ross said. "We jumped on it right away and had a contingency plan, and people have appreciated it. We've been able to provide the vacation they signed up for with little complications."

Wedgefield gets facelift

Wedgefield Country Club in Georgetown has a full 18 holes open for the first time in nearly a year.

The course re-emerged from bankruptcy to reopen on July 10, but one hole was being played on a temporary green while a new par-3 was being built. The 16th hole opened this past week. It is 165 yards featuring a pond in front of a slightly elevated green protected by bunkers on each side. The green and hole are framed by live oak trees. Matt Sapochak, who helped the Marlowe's design and build Winyah Bay, designed and shaped the hole.

The hole replaces a par-3 that is no longer on property owned by the course's owners - George Marlowe and his sons Scott and Wade. In addition, the short par-5 10th has been shortened and is now a 365-yard par-4. "It was an easy par-5 and it's just as easy a par-4," Wade Marlowe said.

The change drops the 7,000-yard Porter Gibson and Bob Toski layout that opened in 1972 to a par-71. Those are the only changes the Marlowes have made. "We just whipped everything that was here into shape," Wade Marlowe said. "We spent a lot of money doing that."

The Marlowes initially purchased Wedgefield in August 2004 and sold the 170-acre property in January 2007. But they financed the sale and took the course back this past summer after its owners filed for bankruptcy in December. "It was a pretty easy lead," Wade Marlowe said. "It's an awesome piece of property."

The family is seeking members.

"The local community is supporting it pretty well," Wade Marlowe said. "We can use outside play but the local community is doing what it can do."

Wedgefield is hosting the inaugural Scottie Marlowe Memorial captain's choice tournament on Nov. 7 to benefit the South Carolina Waterfowl Association. Interested players can call the pro shop at 843-546-8587.

First Tee on road

Four members of the First Tee of Myrtle Beach are participating this weekend in the Golf Channel Invitational, an adult/junior event including business executive and other guests at Callaway Gardens Resort in Pine Mountain, Ga.

Up to 18 First Tee chapters from around the world are sending foursomes and each player from the top nine teams in the junior competition Sunday will join three amateurs to form a team in the junior-am Monday. The trip also includes a practice round Saturday.

"It's a good opportunity for the kids and the chapter and for us to continue to meet people," First Tee of Myrtle Beach program director Russ Brown said. "It's pretty awesome."

The event has been created for television, and footage is being shot over the three days for an hour-long highlight special that will air on Golf Channel in December. Peter Yan, 15; Thomas Garavito, 14; Anthony Anderson, 12; and Ethan Hood, 11, are representing Myrtle Beach. Yan is the top player with an 8 handicap.

The players have received some help this week, as attorney William Diggs donated $500 to their trip, and Martin's PGA Tour Superstore donated several shirts to wear in the competition.