Bluegreen Vacations Corporation Receives Termination Notice from Bass Pro, Inc. and Affiliates
May 28 2019 - 6:06AM
Business Wire
BBX Capital Corporation (NYSE: BBX) (OTCQX:
BBXTB) (“BBX Capital”), announced that Bluegreen Vacations
Corporation (NYSE: BXG), which is 90% owned by BBX Capital,
issued the following press release. Please see the Bluegreen press
release below.
About BBX Capital
Corporation: BBX Capital Corporation (NYSE: BBX) (OTCQX:
BBXTB) is a Florida-based diversified holding company whose
principal investments include Bluegreen Vacations Corporation
(NYSE: BXG), BBX Capital Real Estate, Renin Holdings, and IT’SUGAR.
For additional information, please visit www.BBXCapital.com.
BBX Capital Corporation Investor Relations Contact:Leo
Hinkley, Managing Director, Investor Relations OfficerPhone:
954-940-5300Email: LHinkley@BBXCapital.com
--------------------------------
May 28, 2019
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”) notified
Bluegreen that Bass Pro was terminating the parties’ Marketing
Agreement based on alleged breaches by Bluegreen effective as
of the close of business on May 24, 2019. As a result of that
termination, the Company is no longer being given access to
the Bass Pro marketing channels or advertising materials.
Bluegreen and Bass Pro have had numerous meetings and
discussions, the most recent of which occurred on May 20, 2019. At
that meeting, Bluegreen 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. On Thursday, Bass Pro emailed Bluegreen a
question and on Friday Bluegreen responded. Bluegreen was not
advised of the termination by Bass Pro until receipt of Bass
Pro's letter after the close of business on Friday.
As previously announced, Bass Pro filed an action in
federal court related to the outstanding issues between the
parties. Bluegreen, which has not yet been served with
the lawsuit, believes that even if Bass Pro’s claims
were established - which Bluegreen believes to
be unlikely - the amount of Bluegreen’s exposure relating to
the monetary issues raised by Bass Pro pursuant to the agreement
would be less than $20 million. Bluegreen 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.
Bluegreen’s vacation ownership interest (“VOI”) sales to new
customers from leads generated in Bass Pro stores constituted 14%
of Bluegreen’s total system-wide VOI sales, 29% of Bluegreen’s
system-wide VOI sales to new customers and 9% of Bluegreen’s total
revenues for the year ended December 31, 2018.
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, those relating to the impact that the termination of the
Marketing Agreement between Bluegreen and Bass Pro will have on
Bluegreen’s business, results, and financial condition, risks
related to the pending litigation, including that Bluegreen may not
be successful in defending such litigation or pursuing claims or
remedies against Bass Pro and that Bluegreen’s liability may exceed
the monetary amount 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.
Source: Bluegreen Vacations Corporation
Released May 28, 2019
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190528005307/en/
Bluegreen Vacations Corporation:Nikki Sacks,
203-682-8263orEvelyn Infurna,
203-682-8265Email: bluegreenvac@icrinc.com
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