BOCA RATON, Fla.–(BUSINESS WIRE)–Bluegreen Vacations Corporation (NYSE:BXG) and its subsidiaries
(“Bluegreen”) announced today that Bass Pro Inc. and its affiliates
(Bass Pro”) and Bluegreen have settled their prior disputes and have
amended their Marketing and Promotions Agreement that will reinstate
Bluegreen’s access to Bass Pro’s marketing channels, including all
marketing activities in Bass Pro retail stores and extend into the
Cabela’s retail stores.
The parties have entered into a Settlement Agreement and Amendment which
provides that:
-
Bluegreen will pay Bass Pro the following amounts as a settlement of
all prior claims, with no admission of wrongdoing:-
$20 million within 15 days of the execution of the Settlement and
Amendment; -
$4 million each January 1st starting in 2020 through
2024 (a total of 5 payments in the amount of $4 million each); and -
Bass Pro will keep the remaining $1.5 million of an amount prepaid
to them earlier in 2019 under the Marketing and Promotions
Agreement.
-
$20 million within 15 days of the execution of the Settlement and
-
In lieu of the existing generation commission, Bluegreen will pay Bass
Pro a fixed annual fee of $70,000 for each Bass Pro and Cabela’s store
that Bluegreen is accessing plus $32.00 per net vacation package sold
(less cancellations/refunds). The fixed annual fee will be prorated
for 2019. The Settlement and Amendment includes provisions regarding
minimum numbers of stores that Bluegreen will be obligated to pay for,
as well as provisions under which the minimum number of stores will be
reduced. -
Bluegreen and Bass Pro agree on specific enhancements to its customer
service policies and procedures, as well as an enhanced complaint
resolution process. -
Bluegreen and Bass Pro will continue expansion of the Bluegreen/Big
Cedar Vacations, LLC joint venture and have modified certain terms of
the operating agreement of the joint venture, including that Bluegreen
will continue to sell tours to the joint venture at agreed-upon costs. -
Bluegreen will become a supporter of the not-for-profit Wonders of
Wildlife Foundation with a portion of proceeds from net vacation
packages sold being donated to the cause, subject to a minimum annual
donation of $700,000. -
The parties agree to resolve any future disputes thru a binding
arbitration process under the Judicial Arbitration and Mediation
Services, Inc. (JAMS) process. -
The parties executed mutual waivers and releases and have agreed to
the dismissal of the pending litigation.
“We look forward to building on our 19-year partnership with Bass Pro,
through which we have developed close to 700 units in our joint venture
at three luxury resorts and together built a successful marketing
partnership in their stores,” said Shawn B. Pearson, President and CEO
of Bluegreen. “We are excited about our ability to expand into Cabela’s
locations, which will further cement our ability to grow and give their
more than 200 million store visitors each year the opportunity to make
memories at our resorts.”
Johnny Morris, Founder/CEO of Bass Pro said, “Bluegreen shares our
commitment to providing our customers and its owners and guests a
memorable vacation in the great outdoors. We look forward to this next
chapter of our long running relationship.”
About Bluegreen Vacations Corporation Bluegreen Vacations
Corporation (NYSE: BXG) is a leading vacation ownership company that
markets and sells vacation ownership interests (VOIs) and manages
resorts in top leisure and urban destinations. The Bluegreen Vacation
Club is a flexible, points-based, deeded vacation ownership plan with
approximately 217,000 owners, 69 Club and Club Associate Resorts and
access to more than 11,000 other hotels and resorts through partnerships
and exchange networks as of March 31, 2019. The Bluegreen Resorts
Collection, designed to deliver a seamless process for vacationers,
features beautiful and unique resorts grouped by theme that range from
beachside getaways, to theme park adventures, immersion in the great
outdoors, historic and cultural exploration. Bluegreen Vacations also
offers a portfolio of comprehensive, fee-based resort management,
financial, and sales and marketing services, to or on behalf of third
parties. Bluegreen is approximately 90% owned by BBX Capital Corporation
(NYSE: BBX) (OTCQX: BBXTB), a diversified holding company. For further
information, visit www.BluegreenVacations.com.
Forward-Looking Statement
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All
opinions, forecasts, projections, future plans or other statements,
other than statements of historical fact, are forward-looking
statements. Actual results, could differ materially from those
contemplated, expressed, or implied by the forward-looking statements.
Forward-looking statements are subject to a number of risks and
uncertainties, including, but not limited to, the Settlement and
Amendment may adversely impact Bluegreen’s business, results, growth and
financial condition, that the temporary termination of the Marketing and
Promotions Agreement by Bass Pro may have had an adverse impact on
Bluegreen’s operations and results and that the joint venture between
Bluegreen and Bass Pro will not be profitable or grow as anticipated.
Reference is also made to the risks and uncertainties regarding the
business, operations and trading markets of Bluegreen which are detailed
in reports filed by Bluegreen with the Securities and Exchange
Commission (the “SEC”), including the “Risk Factors” sections thereof,
and may be viewed on the SEC’s website at www.sec.gov.
Bluegreen cautions that the foregoing factors are not exclusive. The
reader should not place undue reliance on any forward-looking statement,
which speaks only as of the date made. Bluegreen does not undertake to,
and specifically disclaims any obligation to, update or supplement any
forward-looking statement, whether as a result of changes in
circumstances, new information, subsequent events or otherwise, except
as may be required by law.
Contacts
Bluegreen Vacations Corporation:
Nikki Sacks, 203-682-8263
or
Evelyn
Infurna, 203-682-8265
Email: [email protected]
