Rivers Inlet Resort Going Bankrupt?!?!

[SerengetiGuide]

http://www.ctvbc.ctv.ca/servlet/an/...yees_090926/20090926/?hub=BritishColumbiaHome

Employees of a remote fishing resort on B.C.'s rugged Central Coast say they're in limbo because they haven't been paid for their work this season.

Six employees of Rivers Inlet Resort told CTV News that their paycheques bounced.

Baker Mansour Nemouchi says he's owed almost $10,000.

And he needs it.

"I have kids. I got a wife. I got kids to feed," he said.

Toni Brown is in B.C. on a working vacation from New Zealand.

She was relying on that money to keep travelling. Now's she's stranded.

"Basically, ruined my plans actually," she said.

In all, 15 employees worked a month without a day off.

They say they tried repeatedly to call their bosses -- resort owners Rick and Ron Shapland of Oregon -- but couldn't reach them.

CTV was not able to reach them either.

The owners did, however, send an e-mail to employees, telling them that the company might have to declare bankruptcy.

"We have researched every avenue we can think of ... Not only are all of you suffering, we are suffering as well," the e-mail read.

The area had a banner fishing year. Other resorts are reporting record catches.

But the Shapland brothers may be victims of the recession. The employees say business was down.

The employees say the Shaplands were good bosses. They just want the brothers to pay up.

www.serengetifishingcharters.com

*NEW VIDEO*
http://www.youtube.com/watch?v=GlEzuNC59ck

 

[clearwaterB]

I just heard about this last night. It is too bad, it was the only working mans lodge there. The Shaplands are good guys too. Mansour the baker was incredible at his craft, and and a heckuva fisherman. I have had the good fortune to go twice and will miss it!

 

[profisher]

In a situation like that you have 3 choices, none good, fold before the season and eliminate any hope of pulling a hat out of the fire, screw some prepaid customers by laying off the employees and pulling the plug as soon as it becomes apparent the hat is going to burn, or screw the employees by finishing the season knowing they won't be paid. I guess they could have gone for a 4th option. Sell assets worth the amount owed to the employees for a $1.00 before declaring bankruptcy and screw the bank!

 

[fishin_magician]

quote:Originally posted by profisher

In a situation like that you have 3 choices, none good, fold before the season and eliminate any hope of pulling a hat out of the fire, screw some prepaid customers by laying off the employees and pulling the plug as soon as it becomes apparent the hat is going to burn, or screw the employees by finishing the season knowing they won't be paid. I guess they could have gone for a 4th option. Sell assets worth the amount owed to the employees for a $1.00 before declaring bankruptcy and screw the bank!

Hear what you're saying.

But to my mind the real story is this: the owners lacked the integrity and wherewithal to disclose the situation and take corrective action to stay afloat. Fact is: after all expenses are said and done, the staff's wages are but a minor issue and if they couldn't sell the trips to recover the fixed costs, then they're entirely to blame..welcome to the wonderful world of business. It's an inherent risk.

I worked at that lodge and according to one of the old owners, food and fuel and transportation costs are the biggest expenses and then labour. If paying customers were not present, then drop the prices to "recover fixed costs" and get 'er done.

Anyways, in any situation, there's more to the story here and all options were not good as you say.

 

[Big Zeke]

This might be the tip of the iceberg. The runs were excellent this year but most of the ldges had empty rooms. In one case, a friend offered to fill 15 rooms with one crew in midseason, the only catch is that he would only pay 2/3 of the posted rate...the lodge declined; most of the rooms sat vacant.

In some cases it's better to fill the rooms to cover costs rather than have a half full lodge at full rate...the fixed operating costs are killers in this industry. Occupied rooms result in booze & giftshop sales so even filling at cost isn't a bad idea.

With credit remaining tight and a full recovery a ways off yet I think there might be several more going on the extinct list.

Zeke

 

[Fishinnut]

I would think that an American owned business operating on foreign land would be subject to some sort of BC paying the employees and taking it out on the owners. I know years ago I worked down here in the states for an out of state company and had the same thing happen. My state was going to pay us and go after them taking everything if they didn't pay it. I got my check within days.

Sad Sad deal.

 

[profisher]

You can't go after the individuals if it is an incorporated company...only the company. Secured creditors get first dibs at assets. (banks)