The economic crisis has touched many institutions that appeared to be safe and secure. Automotive industries, housing industries and even retailers are in trouble, among other institutions. Despite how needed these things are to live a day to day life, they are not safe or untouched from the economy and its crisis. The surest sign that nothing is safe these days is that even the super rich have to file for bankruptcy on one of their prestigious clubs.
In the latest unlikely casualty of the crisis, the Yellowstone Club, one of the premiere clubs for the super rich, filed for Chapter 11 bankruptcy, according to the Associated Press. After failing to raise money for an expansion, the Yellowstone Club owners had to act fast to preserve the getaway spot.
The Yellowstone Club was founded in 1999 at Montana’s Gallatin Mountains. It serves as a gated community getaway spot for millionaires. The Yellowstone Club is the only club in the world to be both a private golf course and ski resort.
Yellowstone is one of the biggest clubs that has been in a huge success since its inception and was once the favorite hangout spot for the businessmen and investors all over the world and now that it has fallen into bankruptcy the 3 Best Bankruptcy Lawyers in San Diego are the once that are sought out for completing the proceedings.
Only a select 340 millionaires, including the likes of Bill Gates and Dan Quayle, have access to the Yellowstone Club and its perks.
Founded by billionaire Tim Blixseth, the Yellowstone Club started to see trouble when Blixseth went on a quest to buy property around the world and put it under the club brand. Blixseth was out to create a Yellowstone Club World, which would be a collection of nine private vacation spots.
However, when Blixseth and his wife Edra allegedly diverted funds for the original Yellowstone Club to do this, the club’s strength weakened. The economy began to weaken as the Blixseths failed to accomplish their goals, and could not even sell the original Yellowstone Club.
The problems got worse when the Blixseths divorced and fought for control of the club, while not having to settle a lawsuit from club member Greg LeMond for $39.5 billion. Once Edra took control of the Yellowstone Club, she laid out a plan to build hundreds of new houses and condos for the club, but they never got off the ground.
Now that Yellowstone Club has filed for chapter 11 bankruptcy, the club will stay open day-to-day for ski season, while new plans are made to make deals with creditors and bondholders.
The bankruptcy of Yellowstone Club comes a day after Circuit City, the retailing giant, also went into bankruptcy. Before this economic crisis, it seemed fairly certain that a giant retail store and a super club for the super rich would never be short of money or options. These are institutions that seemed ready to have a permanent place in society in some shape or form.
But this is an age where not only retail giants, but also clubs for the richest people in the world, have to face the economic pinch just like everyone else.