Gervase Warner CEO of Neal & Massy
The Board of Almond Resorts Inc (ARI) confirmed today at a Special Meeting of Shareholders that Almond Beach Village will be closed at monthend. The news of the closure should not come as a surprise because it was hinted at in recent weeks by senior Neal & Massy personnel. It was confirmed at the meeting today that Scotiabank – after several loans arrangements – pull the plug. There is the good news that the other Almond properties will likely be sold as going concerns.
The closure of Almond Beach Village will be a massive blow to the tourism sector and economy of Barbados. Over 500 employees on the breadline with the official employment rate posted at 10%+ gives good reason for a national response. The shareholders present at the meeting today viewed unaudited financials up to end of December 2012 – huge losses, negative cashflows and deep erosion of shareholders equity makes the decision to close a no-brainer but…
It is interesting Warner (CEO of Neal & Massy) took the time to stress to shareholders today that the aggressive expansion strategy by the Ralph Taylor led Board in 2006 over-leveraged ARI. He qualified his statement by stating no one could have predicted the global economic meltdown which has led to the financial difficulty ARI is experiencing. BU wonders why a short 5-years ago when Ralph Taylor and company made the decision to expand there was no vision to upgrade the existing plant. It was a poor decision by Barbados’ leading hotelier and his other board members.
The other notable occurrence at the Special Meeting was the presentation of Mia Mottley who represented her father on a proxy. Mottley must be given kudos for finding the time to lend her voice to another cause on the side of the people. BU cannot do justice to her eloquent delivery in written form. She explained to the Board how important the ARI product to the economy of Barbados. She used the analogy that the closure of the Almond Beach Village is to be likened to a hurricane hitting the economy of Barbados. She suggested that the psyche of Barbadians must be managed carefully given consideration to how the closure is likely to be received. She reminded the CEO of Neal & Massy that it is a company with other businesses operating in Barbados. The analogy used by Mottley when she reminded the room of of the time Barbadians boycotted a Test match was misunderstood by Warner but not by the Barbadians present.
The question on the lips of many is how is government going to respond given the gravamen of the matter. So far discussions between Neal & Massy and the Barbados government has not borne any positive results. Say what you will this DLP government has had to deal with a few challenging matters.
A tourism property owned by a billion dollar Corporation, run by an individual who is supposedly at the top of his game in the hospitality industry on an island where the main revenue is derived from the tourism goes on the skids and somehow the Gov’t is to blame? ( that’s a mouthful).Was Almond bound by any Statutory reporting requirements that would alert any Gov’t that things were going downhill?
Tourism is the lifeblood of the country but this can happen when a foreign interest owns part of your primary productive units, they can pull the plug anytime. If this was T & T they would be more sensitive to the plight of the workers and Kamla would probably have called them up on the carpet. It would be interesting to know whether they carried out any due diligence on the property since acquisition and only paid attention when the red ink go to be too much.
When OSA was PM there was a time when he appealed to the National Pride of some of the Corporate Leaders not to take certain actions which would harm their employees, but then decisions were still made in B’dos.
The people in the Boardroom in Port of Spain who make these decisions don’t have the same sense of National Pride when it comes to B’dos, everything revolves around the bottom line and they don’t have to live there.
Concur….there is sinister-ism in this play for sure ..
Foreigners who own villas and condos in Barbados have direct contact with Bajans.
The owners of Almond are a corporate entity and they are in business to make money not friends.
They will try to pressure government for a “bailout” and keep their cash in Trinidad.
In the words of David Clayton Thomas, “God bless the child that’s got his own.”
Almond has been in decline long before it was bought by Neal and Massy. Just ask the workers there. Taylor ran this company as if it were his own and no one there could question his actions. When I worked there I would hear the staff complaining that the rooms needed fixing, leaking roofs, stained and holey bed linens, the grounds needed better maintaining. For almost fifteen years Almond was in decline, Taylor managed to convince many that the emperor did indeed have clothes on. Taylor saw himself as the black Donald Trump. This is no joke this man believes this. Many staff members have gone beyond the call of duty to make guests comfortable. They are a team of workers that many would love to have on board, let us hope that some will find work overseas until things become better.
It should be obvious, even to the most politically partisan, when Neal & Massy bought BS&T and became saddled with the hotel, it should have sold if it was not committed to upgrading the plant which would have been 12 years old at the time and already in decline. One wonders if the intention was always to asset strip Almond given the 30+ acres of postcard-like beachfront property. The global recession would have interrupted such plans.
Today’s (Wed April 5) THOUGHT FOR THE DAY posted at http://whatreallyhappened.com :
“In many respects, we now live in a society that is only formally democratic, as the great mass of citizens have minimal say on the major public issues of the day, and such issues are scarcely debated at all in any meaningful sense in the electoral arena. In our society, corporations and the wealthy enjoy a power every bit as immense as that assumed to have been enjoyed by the lords and royalty of feudal times.” — Robert W. McChesney, author — Rich Media, Poor Democracy
Has anyone given thought to Neal Massey’s buying Almond.. not upgrading it.not doing anything to it (Butch)..amassing losses ….using those loses as carry forward Group Losses to its betterment on Consolidated Group Financials ? Yes Bruds done internationally by prudent Tax Specialists (PWC)…may be NM portfolio has also reached that level of sophistication.
@Onions
Why would Neal & Massy do as you suggest?
This is a company which currently owns a healthy chunk of Bajan enterprise. Are Barbadians so stupid that we would allow Neal & Massy other businesses to strive if what you suggest were to occur?
Mia Mottley said it best at the Special Meeting, we all remember the boycott of a Test match for a no-name player named Anderson Cummins.
Minister of Finance of Barbados, Mr. Christopher Sinckler, and some other Ministers of this DLP Government – including the Prime Minister – have been saying publicly for the longest while how the political economy and services industry sectors of Barbados have been stabilized, at the macro level (primarily by particular government fiscal monetary policies – false claim).
So that each and every time we see or hear such statements being reported in the media, and these kinds of statement being attributed to the Minister of Finance and those other DLP ministers, we and many of our associates are made to ridicule and deride those kinds of feckless statements, primarily because of the ludicrously, farcically long period of time that they have been saying such (for almost four years now), and primarily because of the woefully inadequate amount of knowledge, wisdom and understanding they portray when it comes to such matters as relaying sufficiently plausible information on the real performances of the political economy and services sectors of the country, at the micro-level.
The fact is that these sectors could never ever be stabilized at the macro-level at this juncture, when there are tons of evidence that there is serious instability and decline in business and commercial activity at the micro-level.
The micro-level makes up the macro-level.
What these joke DLP ministers muchly prefer to do is to believe in the many inaccurate statistics coming out of the Barbados Statistical Service, the Central Bank of Barbados, and the Ministry of Finance, and not to make it a custom to actually observe and listen properly to much of what is happening at the micro-level.
But, what they apparently do not know is that the data/information gathering processes concerning the particular sectors comprising the political economy and the services industry sectors of the country, are so very flawed, deficient, and unreliable, as well as that the methods used in drawing statistical inferences about values for the macro-level from the very limited and false information provided at the micro-level, are also very flawed and deficient and unreliable too, that a lot of the figures posted by the Barbados Statistical Service, the Central Bank of Barbados, the Ministry of Finance are NOT WORTH repeating.
Hence, what the PDC knows is that these joke ministers JUST DO NOT DAMN WELL KNOW ABOUT THE ESSENCE OF THE STATEMENTS THEY ARE MAKING re how the political conomy and services industry sectors have been stabilized (by government policy).
Now this being so, it must mean that they ARE ACTUALLY PARROTING WHAT HAS ACTUALLY BEEN TOLD TO THEM BY TECHNOCRATS like the Governor of the Central Bank of Barbados, who too has been for a very inordinately long time telling us – the citizenry of Barbados – that the economy has stabilized.
What a sick joke!!!
What a shame!!!
Well, the impending closure of Almond Beach Village is another clear piece of evidence that there is serious and ongoing instability and decline in the services industry sector of the country.
PDC
Its called Opportunity loss cost tax advantage.
@Hants
In the words of David Clayton Thomas, “God bless the child that’s got his own.”
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Musical taste is subjective of course, but the classic is still the Billie Holiday original first recorded in 1941
http://www.irvinehousingblog.com/…/5-wildbrook-irvine-ca-92614-wood...
To those who are issuing threats, veiled or otherwise including that insensitive comment about boycotting cricket your bullying is misplaced and mistimed. Get your facts first and get real. Find out first what is responsible for the massive losses at Almond. Don’t you think the investors are hurting? would you be putting in more money after losing over ninety million. You are picking on the wrong issue. If these people retaliate some people you least expect may get hurt.This is more than reaches the eye.
@JB
No threats but there is a current reality arising from the unraveling mess.
If you are aware of out issues which must be discuss perhaps the time has come to articulate on them.
as a uk resident who has been visiting the island and staying @abv with my family for over 12 years every I, and my freinds are incredibly saddened to hear the news, well done to Doreen who is fighting hide for the employees and the Island to say this institution…. we as customer could see this coming for many years and we are not surprised at all…. there will be big money behind this and someone will pick it all up for a song…….. very sad … and good luck to Doreen Motley and all the staff who have become freinds over the years…….
@ You should know the facts. You have your ears to the ground! I guess too many people tied up in this. But be fair! Don’t go after the Trinidadians when you should know this is a homegrown issue.Let us stop burying our heads in the sand and realize we have serious problems in this country. This behaviour and all its cliquism is sinking this country.The chickens have come home to roost.!.
JB wrote “Don’t go after the Trinidadians”.
Trinidadians own Almond Beach Village.
Only a village idiot would own a business ad not monitor its performance and profitability.
The pattern I see with Clico and now with Almond is that the owners were happy when the Bajan CEOs were sending them buckets of cash prior to the recession.
Then when the companies started failing they left them to self destruct and now looking for Government bailouts.
I feel sorry for the employees who now have to go home and hope for a miracle.
Perleeze!! Why should anybody, easpecially a private sector company, hang on to a company that has lost millions, owes millions more, and be forced to keep the same management that drove it into the ground. This is not a T&T issue, as JB has stated, and Island Gal has it right. Taylor had absolute authority. Nobody at Almond could suggest anything to him, because he always knew better. His hubris is unbeliveable. When one person has such authority that not even his owners could question without being accused of racism, then the responsibility for the demise of Almond rests fairly and squarely on the shoulders of that person. It is incredible, and unfortunately a measure of their justified desperation that employees would consider taking a pay cut to stay at the hotel under Taylor’s leadership. The late Clive Jenkins, a trades union leader in the UK once said in a similar situation, “You bloody well need saving from yourselves!” You will just be pawns in another pocket-stuffing exercise. Steupse!
You all talking CRAP..Ralph Taylor knows this tourism industry BACKWARD OUT.Nothing but jealousy in here for a black man who started out as a bell hop at ASTA hotel and worked his way up to owning hotels in St.Lucia ,construction companies and more…..
Can you tell me how a man 40 year + in the hotel industry with a staff he personally bought everywhere with him…would not understand the importance of refurbishing a hotel….BULL SHIT…
The man has been able to get his staffs confidence to invest in the hotel..the morale up there was unequaled..and now some of you wid your jealousy and classicism choose to paint him negatively..BULL SHIT I say.
Ralph may have his personal issues…but I know he is a top class hotelier.
I give him that..
I wondered why BS&T never pulled the plug on the good Tailor, I heard that he sewed their uniforms and sewed them well that he had their balls squeezing in their pants if they made a sudden move to remove them. The Tailor also had friends in high places it seems and was an excellent spinner of yarns. He was political paling cock backing those he thought would prolong his power. Well all good things must come to an end and sifting through the dust will give clues to those who want to know what was really going on. There is a paper trail and as John Denver sang…Follow me where I go, what I do, who I know Make it part of you to be a part of me Follow me up and down all the way and all around Take my hand and say you’ll follow me
@David
@Onions
Why would Neal & Massy do as you suggest?
This is a company which currently owns a healthy chunk of Bajan enterprise. Are Barbadians so stupid that we would allow Neal & Massy other businesses to strive if what you suggest were to occur?
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Beware Baje ! if Trinidad wanna shut down SBI..go ahead…ICB go ahead ..StarCom go ahead…Nation News..go ahead….BNB…go ahead.. Brydens .go ahead, Did I miss any ? My Point >.>….NUFF people go be outta WUK…..we threading dangerously people ..(not D Trinidadians in here doa),
Trinidad and ToBADOES…..we cumin
The word is Neocolonialism…look it up Franz Franon…UWI..recall.
Neocolonialism is the practice of using capitalism, globalization, and cultural forces to control a country (usually former European colonies in Africa or Asia) in lieu of direct military or political control. Such control can be economic, cultural, or linguistic; by promoting one’s own culture, language or media in the colony, corporations embedded in that culture can then make greater headway in opening the markets in those countries. Thus, neocolonialism would be the end result of business interests leading to deleterious cultural effects
There you go Old Onion Bags, finally playing the race card. Taylor knows the tourism industry inside and out, the hotel industry too, for sure. So how come this doyen of management, this superb business strategist, lead the Almond group into such massive losses and debts? There has to be another side to this and that is a road that you don’t want to travel. Greed, incompetence and hubris are what brought Almond to its knees. Steupse!
Definitely …there got to be another side to this …and nobody is talking…which seems strange to me. Also, where are the financials ? As once a business man myself…Neal and Massey’s behavior is not sounding right either, no one invests that kinda money…..and allow the plant to run to ruins? I could understand that with Sam Lords and T.Grant, but not NM.
On the other hand, Taylor know his stuff…he is single handedly responsible for most our good tour business, the man got good good contacts overseas.No something wrong….no local CEO manages NM fairs with a free hand.get that right.Do you remember Geddes Grant ? Think.OK
Bruds Onions don’t play no race card….is a class ting nowadays.
In light of the financial state of the company it is not unusual for such to impact the completions of financials. In the case of ARI the financials (unaudited) up Dec 2011 are with the FSC.
Interesting to listen to President of the Barbados Hotel Association singing to all the benefits of Almond. It therefore begs the question why the hell the management would not have placed the revamp of the plant as a priority. What folly!
Who or which company made significant income from Almond’s business, as fees or commission?
Don’t tell me a management company ?
@david
To call it folly is being nice. Was there this past month and saw firsthand, plus overheard the complaints. Taylor may have had a vision but he clearly lacked a backup plan or escape strategy. Planning should have foreseen or provided for at least some of the causes for the failure. Again, will we ever be “informed” of the full “truth?”
Ole Onions you like yuh know de man real good and how he know the industry Backwards out LOLL and all that Bull shitting.
Barbados Hotel and Tourism Association (BHTA), Mr. Colin Jordan, ought to hang his head in shame.
In relationship to the ongoing national discussion on the imprnding closure of the Almond Beach Village Hotel, he is being reported in the Weekend Nation Newspaper (Thursday April 5, 2012, as saying that: “When you factor in those persons who have children, this could affect a good 1500 persons or more”.
According to the said Weekend Nation Newspaper article he also supports some form of government intervention via tax concessions and electricity subsidy.
While it is true that the likely closure of the Almond Beach Village will have significant social and financial repercussions, it is absolute foolishness for Jordan to be hiding behind children in defence of the sustaining of a hotel that has been clearly badly mismanaged over the years.
No serious investors are going to continue investing substantial sums of money into what may be described as a loss-making venture any where anytime.
This growing culture of using excuses to get already inept and wasteful governments to bail out hotels and other badly managed inefficient businesses has got to stop as well.
The fundamental role of a government of Barbados must be to provide internal and external security for citizens and visitors alike – provide a significant measure of social and welfare infrastructure for citizens and visitors (citizens and visitors being made to pay for such services where really necessary) – to provide a measure of foreign affairs representation of the country and the country’s citizens overseas – to provide for a balance between the rights and freedoms of individuals citizens and the duties and responsibilities of those citizens, and all of those within the context of ensuring the integrity of the basic functions of the government, all within the context of a system of administration of justice.
Hence, it is an entire folly to think that the government role is to be bailing out of hotels, businesses that have clearly been badly mismanaged,on some pretense that the social fall out would be significant, when already there exist a social safety net already in place in Barbados that can minimize such social fallout.
What arrant nonsense.
Mr. Colin Jordan GET LOST.
Finally with regard to what is attributed to the Barbados Chamber and Commerce and Industry President, Andy Armstrong, in the said Weekend Nation article, he has got it right on this issue. The private sector must be apprehensive about the Government’s involvement in Almond Beach Hotel in a big way. And yes he also dealt with the fact that they are aware that the government wasted millions and millions of dollars in the Gems project..
So who really wish to see government getting more and more involved in what is a private sector driven sector? Who??
PDC
Heywoods Hotel was started in the early1980′s by the DLP with a loan from the World Bank . The DLP lost elections soon after and the project was completed by the BLP.
In the 1990′s , the IMF pressured the Government of Barbados was to sell Heywoods Hotel and other state owned operations
In 1994 the BLP sold Heywoods to the BS&T (Barbados Shipping and Trading ) for US $17 million ( $ 34 million BDS) .The BLP used the money to repay World Bank loans.
Heywoods was later renamed Almond Beach Hotel by the BS&T.
Thanks for the history ras !
I Have been informed that a gentleman associated with Almond Beach had a company in Miami from which things were sourced for Almond Beach. Who is that gentleman? This is another sordid affair.
Barbados is sinking because we are following the misguided policies of the IMF .
Barbadians will continue to suffer if we continue to take the bad medicine prescibed by the IMF.
To what value per share did N&M reduce its investment in ARI?
Someone purchased 10,000 ARI shares at $0.50/share this week – speculation or informed action?
onions you seem to forget that to thunderous applause from the frenzied crowd in hhaggatt hall that mr thompson promised to catspraddle the sale of bsandt to neal and massy if the ink on the sale document didn’t dry by the time he won the elections. methinks that the ink did dry.
Please continue to make comments HERE on the Almond Saga.