NEWRY, ME According to Reuters, American Skiing announced this week that it would cut its staff and close a resort as part of a larger restructuring plan aimed at improving the company s long-term performance. The ski resort operator said it expects to take charges related to both the reorganization and the company s terminated merger with MeriStar Hotels & Resorts totaling $7.6 million during its fiscal third and fourth quarters.
The company said in a statement it would eliminate 70 full-time year-round positions and convert an additional 160 jobs to seasonal from year-round status. The changes will affect about 14% of the company s year-round staff and will result in cost saving of about $5 million per year. American Skiing also said it would sell its Steamboat resort in Steamboat Springs, CO, by the end of this year, according to the report.
Finally, the company mentioned that it expected third quarter and full-year 2001 earnings before restructuring charges to be lower than expected due to weak revenues in the real estate business during the period. (5/30/01)
SOURCE:Reuters