A new day dawned at Sea Island on Wednesday, bringing with it an end of an era for the tony resort.
The coastal Georgia mecca to generations of Atlantans, ruined financially by an ill-timed re-launch geared to the mega-rich, filed for Chapter 11 bankruptcy. A pair of out-of-state hedge funds -- Oaktree Capital and Avenue Capital -- will likely be its new owners after an October bankruptcy auction.
That morning, A.W. "Bill" Jones III announced the end of his family’s eight-decade ownership of the seaside resort. Jones will remain chairman and CEO, trying to maintain continuity for a community beset with two years of doubt. The new buyers pledged to retain all 1,400 Sea Island employees.
After a 61-minute meeting Wednesday with 700 Sea Island members, Jones sat down with The Atlanta Journal-Constitution to talk about the bankruptcy filing and Sea Island’s future, as well as its past.
Q: What was the message you shared with employees?
A: Their mission is to continue to focus on what they do best and that is serve our members and guests with warm, genuine Southern hospitality, service from the heart. There is no group of employees any better at that than the employees of Sea Island.
Q: What was the tenor of the meeting with the membership?
A: It was overall a very positive meeting. I expressed to them my understanding of what they've been through these past two years and my concerns about them through this period and acknowledged that it has been difficult. I accepted my role in this company through a very difficult period and that I understand their feelings and emotions and I'm sorry we've all been through this.
But I went through with them that this is a point in time where we have the opportunity to build a new foundation, that we have, that Sea Island has a bright future. ... The employees here today will be here tomorrow; that the level of service we offer here today will be here tomorrow; that the amenities and club operations people enjoyed today, they will enjoy tomorrow; and that their membership deposits are secured.
Q: What are you feeling today?
A: It's a bittersweet moment. We've gone through a very difficult time and I feel like we achieved the best possible outcome we possibly could, given the circumstances.
Q: What worked and what didn’t work?
A: When we recognized we'd have to tear the original Cloister down ... you know the history of that building. It was built as a temporary structure. It was literally going to fall down. Our goal was to build what we thought [original architect Addison] Meizner would have built, had he built a permanent structure at the time. We accomplished that.
I don’t think it matters what we did, given the fact we did it on the eve of the most severe financial meltdown since the Great Depression. ... We didn’t anticipate real estate values would almost completely vaporize.
Q: What have the past two or three years been like on a personal level?
A: It's been grueling. I got up every day with the intent to do the very best I could for our employees, our members and our guests.
Q: Earlier you described the moment as bittersweet.
A: It's a great outcome for our members and employees. But it's the end of an era for my family, so that's the bittersweet nature of this.
Q: Dialogue within the family: What has it been like?
A: Their sense is -- they've been very supportive -- but they are sad and disappointed.
Q: Do Oaktree and Avenue see Sea Island as an investment they would hold for a long time?
A: I think they recognize the long-term nature of this investment and the unique characteristics that make up Sea Island. They appreciate that. But speculating about the future, one thing I've learned about the last two years, there's uncertainty in life. But today is a good day."
Q: What steps would you take again? What steps would you have not taken?
A: That is speculative. If we had done half of what we actually did, we'd still be in the same position we are today, given the global financial meltdown. If we had not compressed our building plan, which was necessary so as not to interrupt business, and gone with a longer, more drawn out construction process, we may well be sitting here still today in the same situation, but only half-way finished.
We had decisions to make at the time and given the facts we had at the time, it was the right decision to make.
Q: Many of your members told me that they are concerned about a hedge fund taking over, given the reputation of holding an investment and flipping it.
A: This is the best outcome for the members. The only thing to settle that concern is time.
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