fbpx

Bluegreen shares drop sharply

Shares of Boca Raton-based Bluegreen Vacations (NYSE: BXG) fell 19 percent, down $1.97, to close at $8.35 on Tuesday as Bass Pro Shops said it was canceling a marketing agreement that had kiosks for Bluegreen in its stores.

Monday’s trading caps a series of announcements that have seen Bluegreen shares fall 44 percent from $15 on Wednesday, May 22.

The Fountains in Orlando is one of Bluegreen Vacations’ properties

I’m familiar with Bluegreen from a company profile published last year. The Bluegreen Vacation Club is different than some of the traditional timeshare players. It offers a flexible, points-based, deeded vacation-ownership program that connects approximately 216,000 owners with 69 clubs and club associate resorts, I reported in the article.

CEO Shawn Pearson celebrates Bluegreen’s IPO at the New York Stock Exchange
CEO Shawn Pearson celebrates Bluegreen’s IPO in 2017 at the New York Stock Exchange

Here’s a chronology of what happened:

April 17: Bass Pro Shops, which is based in Springfield, Missouri, files a federal lawsuit against Bluegreen saying Bluegreen didn’t pay enough in commissions and asking for not less than $10 million, the Springfield News Leader reports.

Monday, May 20: Bluegreen holds the last of numerous meetings and discussions with Bass Pro. Bluegreen said it proposed a comprehensive plan to address the outstanding issues between the parties. At that meeting, Bass Pro committed to getting back to Bluegreen and to sending Bluegreen requested documents.

Wednesday, May 22: BBX Capital (NYSE: BBX) of Fort Lauderdale announces after the close of the stock market that it won’t complete a merger with Bluegreen by buying back the 10 percent of its shares that it doesn’t already own.

Thursday, May 23: Shares of Bluegreen start to tumble, closing at $10.34 on heavy volume of 770,762 shares compared with an average of 175,277. Bass Pro emailed Bluegreen a question, Bluegreen says.

Friday, May 24: Bluegreen responds to the question and after the close of the stock market Bass Pro says it will terminate the marketing agreement.

Monday, May 28: Bluegreen issues a press release at 6 a.m., saying it had a termination notice effective May 24. Shares close at the daily low of $8.35.

Bluegreen said on Tuesday it has not yet been served with the lawsuit and believes that even if Bass Pro’s claims were established, which Bluegreen believes to be unlikely, the amount of Bluegreen’s exposure  would be less than $20 million.

Bluegreen said it intends to pursue all legal and equitable remedies available to it, including the filing of a counterclaim in the pending litigation, for wrongful termination by Bass Pro of the parties’ marketing agreement.

So, the question is: Can the two sides hammer out some sort of monetary deal soon to end the dispute and get the kiosks open again?

Stay tuned.

 

 

 

 

You May Also Like

Panel to Discuss Miami’s Hospitality Market on Wednesday

Guests can learn more about the current and future trends in the hospitality space.

Tom Aviv, Masterchef Israel Champion, Brings His American Venture to Miami

The Israeli sensation’s restaurant offers an innovative menu and retro vibe that transports guests to Tel Aviv in the 70s.

Spice Up Your Life at Contessa in Miami

Well, they’ve done it again. After Major Food Group scored successes with Carbone, Dirty French Steakhouse and ZZ’s Club, expectations were high—to say the least—for Contessa, the five-month-old Miami outpost

Eau Palm Beach Resort & Spa Still Dazzles on the 10th Anniversary of Its Name Change

For a decade, the 309-room Eau Palm Beach Resort & Spa has occupied a curious space, both literally and figuratively. For one thing, its location—around 10 miles south of the

Other Posts

Indulge in a Royal Dining Experience at Sexy Fish Miami

When we think of brunch, we envision a leisurely meal with friends and loved ones. One where we can enjoy breakfast or lunch food while indulging in a few cocktails

A Weekend at Hotel Indigo: Glamour and Luxury in Downtown Los Angeles

The hotel showcases the city’s historical moments.

Fort Lauderdale Beach’s Tallest Penthouse Lists for $11.5 Million

The exclusive sales team for Selene Oceanfront Residences is Douglas Elliman.

Reservations Begin for The Ritz-Carlton Residences, West Palm Beach

Residents will find a curated collection of museum-quality artwork through the common spaces selected from the Jorge M. Pérez Contemporary Art Collection. 

Drew Limsky

Drew Limsky

Editor-in-Chief

BIOGRAPHY

Drew Limsky joined Lifestyle Media Group in August 2020 as Editor-in-Chief of South Florida Business & Wealth. His first issue of SFBW, October 2020, heralded a reimagined structure, with new content categories and a slew of fresh visual themes. “As sort of a cross between Forbes and Robb Report, with a dash of GQ and Vogue,” Limsky says, “SFBW reflects South Florida’s increasingly sophisticated and dynamic business and cultural landscape.”

Limsky, an avid traveler, swimmer and film buff who holds a law degree and Ph.D. from New York University, likes to say, “I’m a doctor, but I can’t operate—except on your brand.” He wrote his dissertation on the nonfiction work of Joan Didion. Prior to that, Limsky received his B.A. in English, summa cum laude, from Emory University and earned his M.A. in literature at American University in connection with a Masters Scholar Award fellowship.

Limsky came to SFBW at the apex of a storied career in journalism and publishing that includes six previous lead editorial roles, including for some of the world’s best-known brands. He served as global editor-in-chief of Lexus magazine, founding editor-in-chief of custom lifestyle magazines for Cadillac and Holland America Line, and was the founding editor-in-chief of Modern Luxury Interiors South Florida. He also was the executive editor for B2B magazines for Acura and Honda Financial Services, and he served as travel editor for Conde Nast. Magazines under Limsky’s editorship have garnered more than 75 industry awards.

He has also written for many of the country’s top newspapers and magazines, including The New York Times, Washington Post, Los Angeles Times, Miami Herald, Boston Globe, USA Today, Worth, Robb Report, Afar, Time Out New York, National Geographic Traveler, Men’s Journal, Ritz-Carlton, Elite Traveler, Florida Design, Metropolis and Architectural Digest Mexico. His other clients have included Four Seasons, Acqualina Resort & Residences, Yahoo!, American Airlines, Wynn, Douglas Elliman and Corcoran. As an adjunct assistant professor, Limsky has taught journalism, film and creative writing at the City University of New York, Pace University, American University and other colleges.