More Layoffs Possible at Bluegreen Timeshares
Wednesday, January 21, 2009
After laying off over 2000 employees, Bluegreen timeshare may still be facing more cutbacks in personnel. An article published by the SunSentinel.com, says Bluegreen timeshare’s chief executive, John Maloney, states that the timeshare sales and development company expects to cut its staff by approximately 60 percent this year.
When you look at Bluegreen timeshare’s past performance, (previously posting more than four straight years of timeshare sales growth) you have to say that this problem seems to have come about quickly. And with the momentum of a fast moving, downhill snowball, things have changed dramatically in a very short period of time.
Changes at Bluegreen Timeshare Happened Fast
In July 2008, Bluegreen timeshare was doing just fine. Their stock was trading at over $12 per share and the timeshare sales and developer, Diamond Resorts, was looking into acquiring Bluegreen for around $15 a share plus all outstanding debt.
As The Timeshare Authority was then reporting to you, timeshare sales (the sale of new timeshare intervals) were holding, despite the challenges hotels were feeling as the economy tightened. Timeshare sales and development companies were making money, not just from the sale of new timeshares, but from the ‘sale’ of the money consumers needed to buy timeshares. Acting like banks, mortgage companies, or loan sharks, timeshare companies were loaning (or reselling) credit at double-digit interest rates that sometimes exceeded 20 percent.
However, as John Maloney put it, “the music stopped.” With the credit market tight, timeshare companies like Bluegreen and others have been forced to cut back on expansion and growth plans. Bluegreen timeshare was suddenly looking to reduce their growth and acquisition budget by some $150,000 million. With development on hold or drastically cut back, the need for timeshare sales and administration personnel also diminished.
Now Bluegreen timeshare is moving forward, making prudent cutbacks and learning to live in the world of the new credit market. They have long been a strong, solid company and they are clearly making the right moves to continue that way.
Here are links to recent posts about this interesting timeline of events effecting Bluegreen timeshare: