FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) is providing information on the impact of the COVID-19 pandemic on certain of its businesses and certain actions that have been taken in response to the pandemic.
While BBX Capital and its subsidiaries have each been impacted by the COVID-19 pandemic, Bluegreen Vacations Corporation (NYSE: BXG) (“Bluegreen”) and IT’SUGAR have to date been most significantly impacted by the pandemic.
Bluegreen
As recently announced by Bluegreen, as a result of the pandemic, including current and anticipated travel restrictions and restrictions on business operations, Bluegreen has temporarily closed until further notice all of its VOI sales centers; its retail marketing operations at Bass Pro Shops, Cabela’s stores, and outlet malls; and its Choice Hotels call transfer program. In addition, several of Bluegreen’s resorts have been or are expected to be closed based on various governmental mandates and advisories. Although Bluegreen started the year off strong, with system-side sales of vacation ownership interests up 16.5% through February 29, 2020, Bluegreen has since experienced significant declines in occupancy, sales tours, and system-side sales of VOIs due to the COVID-19 pandemic. As a result, in addition to the aforementioned actions, Bluegreen has taken a number of additional actions, including a reduction in workforce, temporary furloughs, and reduced work hours.
As a precautionary measure aimed towards ensuring adequate liquidity for a sustained period, Bluegreen drew down $60.0 million under its $125.0 million revolving credit facility on March 19, 2020 and pledged/sold receivables under its various receivable-backed debt/purchase facilities to increase its cash position, bringing Bluegreen’s unrestricted cash balance as of March 30, 2020 to approximately $240 million. In addition, Bluegreen has only $20.3 million of debt maturities due during 2020.
IT’SUGAR
As a result of various factors, including government-mandated closures and advisories, IT’SUGAR has closed until further notice all of its stores and has indefinitely furloughed all store and certain corporate employees. As a consequence, IT’SUGAR is not generating any sales other than limited sales through its website. IT’SUGAR currently does not expect that it will be in a position to make rent payments to its landlords in the coming months, and although IT’SUGAR is in discussions with its landlords for rent abatements, the outcome of these discussions remains uncertain. If IT’SUGAR’s stores remain closed and it is unable to obtain rent abatements or deferrals from its landlords, IT’SUGAR does not believe that it will have sufficient cash to continue its operations.
Other
The Company is continuing to monitor the impact of the pandemic on its other business operations and has taken various actions in response to the pandemic, including reductions in workforce and indefinite furloughs.
As of March 30, 2020, BBX Capital, excluding its subsidiaries, had unrestricted cash and cash equivalents of approximately $140 million.
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, BBX Sweet Holdings, and Renin. For additional information, please visit www.BBXCapital.com.
About Bluegreen Vacations Corporation: Bluegreen Vacations Corporation (NYSE: BXG) is a leading vacation ownership company that markets and sells vacation ownership interests and manages resorts in popular leisure and urban destinations. The Bluegreen Vacation Club is a flexible, points-based vacation ownership plan with approximately 220,000 owners, 68 Club and Club Associate Resorts, and access to nearly 11,350 other hotels and resorts through partnerships and exchange networks as of December 31, 2019. 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 more than 90% owned by BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), a diversified holding company. For further information, visit www.BluegreenVacations.com.
