Wednesday, August 03, 2005

Austin's Falconhead Files for Bankrupty

News from Austin: Falconhead Golf Club has filed for bankrupty. Anyone who's played there likely isn't surprised to hear that business was bad. It was obvious on each of my several rounds there - there just weren't a lot of people driving out there (to the Bee Cave area) to pay $75 to play golf. Seventy-five dollars might not seem like a lot to some people, but in Austin Falconhead is the most-expensive daily fee course.

But it wasn't necessarily lack of play, but a major legal loss, that might have driven Falconhead into bankrupty court. The course was recently ordered to pay a settlement of more than $800,000 to the course's developer.

Falconhead does plan to stay in business, however, assuming it is successfully reorganized in backrupty court.

The full story is in the Austin American-Statesman, but you'll need a registration to read it. So here are a couple excerpts:

Falconhead Golf Club, a two-year-old course founded by three members of GSD&M Advertising and other prominent Austinites, filed for bankruptcy protection Monday.

The Chapter 11 filing, which indicates the club intends to restructure its finances and remain in business, came less than three weeks after Falconhead was hit with an $819,598 legal judgment.

Phillips & Jordan Inc., a Knoxville, Tenn.-based construction company, sued Falconhead's developer, the Spillman Development Group Ltd., saying it had not been paid all the money it was due for building the course.

...

Steve Gurasich, a minority partner in Falconhead and a founder of GSD&M, would not comment on the impact of the judgment against Falconhead and whether it prompted the bankruptcy filing.

But he said the golf club is simply "reorganizing its finances" and restructuring its debt. Gurasich said he expects no major changes at the club, which is on RM 620 near Texas 71 west of Austin, near Bee Cave.

"The golf course is doing well, given the competitive environment that is out there," Gurasich said. All Austin-area courses, he said, "are fighting for rounds and revenue."

The golf course is the centerpiece of a $125 million development with apartments, upscale homes and possibly a resort hotel between Texas 71 and RM 620, although the club is a stand-alone corporate entity.

The club, on 169 acres, was the first of the PGA Tour's signature series golf courses, with some features of the golf group's Tournament Players Club courses.

Gurasich said one of the project's original participants wants to withdraw, and filing for bankruptcy gives the club an opportunity to restructure financially. "It's a way to clean it up and move forward," he said, but declined to identify the participant.

Wonder if Falconhead will be having any "bankrupty specials" coming up to drive traffic to the course. Keep an eye out. It's a heck of a golf course.

1 comment:

  1. Anonymous10:31 AM

    Funny side note. We played there on Friday and we pretty much had run of the course. We were tied in our wagers after 18 and wanted to play a couple of "playoff" holes and they said they had to charge us for the replay, WITH NO ONE ELSE on the course. I guess they needed the extra $17 a man to make a dent in that $800 grand.

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