Bluegreen Vacations Corp. Enters into Settlement with Bass Pro to Reinstate Marketing Activities at all Retail Stores & Exten...
14 June 2019 - 8:30AM
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.
- 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20190613005787/en/
Bluegreen Vacations Corporation:Nikki Sacks,
203-682-8263orEvelyn Infurna,
203-682-8265Email: bluegreenvac@icrinc.com
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