Bluegreen Vacations Corp. Enters into Settlement with Bass Pro to Reinstate Marketing Activities at all Retail Stores & Exten...
June 13 2019 - 7:34PM
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
------------
June 13, 2019
BOCA RATON, Fla.--(BUSINESS WIRE)-- Bluegreen Vacations
Corporation (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); andBass Pro will keep the remaining $1.5
million of an amount prepaid to them earlier in 2019 under the
Marketing and Promotions Agreement.
- 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 (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 (BBX) (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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190613005824/en/
Bluegreen Vacations Corporation:Nikki Sacks,
203-682-8263orEvelyn Infurna, 203-682-8265Email:
bluegreenvac@icrinc.com
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