West Virginia's bankrupt Greenbrier resort, whose owners in March announced plans to sell the property to Marriott, said last week that the property had been bought instead by a local businessman.
The Greenbrier said Jim Justice bought the resort and 80% of the Greenbrier Sporting Club. The purchase by the Justice Family Group LLC was made through the acquisition of the stock of the Greenbrier's holding company.
"I am very excited to become part of one of America's finest traditions," said Justice.
Justice said he planned to seek dismissal of the bankruptcy of the Greenbrier. "Our near-term goal is to give the Greenbrier a fresh start," said Justice.
The announcement came as a surprise to many, as CSX, which owns the resort, and Marriott had reached an agreement for Marriott to buy the resort for up to $130 million.
On May 7, the day the deal was announced, Marriott said it had not seen any documents regarding the transaction. "Our purchase agreement for the resort remains outstanding, subject to the process of the bankruptcy court. ... As such we are in the process of assessing the situation."
In the press release announcing the new deal, Michael Ward, chairman, president and CEO of CSX, said, "While this is an entirely different kind of transaction than expected, this is a great result for the Greenbrier, its employees, the community and CSX. Mr. Justice has made his passion and enthusiasm for the Greenbrier very clear."
The news came just days after the Greenbrier's unions approved a new labor pact. That was a crucial element to the Marriott deal as labor strife was resulting in group cancellations even before the current recession caused meetings business to tumble.
The Greenbrier lost $35 million in 2008. Earlier this year it laid off 650 employees, or about half of its workforce.