A popular Wisconsin ski resort that has been around since the 1960s has filed for Chapter 11 bankruptcy protection as it fights to survive another winter on the slopes.
Midwest Skiing Company LLC, which owns and operates the Whitecap Mountains Resort in Upson, Wisconsin, said in court papers that it filed for bankruptcy on Wednesday after back-to-back winters with “extremely low” snowfall gutted its revenue and left it buried in debt.
The resort, with 43 ski runs across 400 acres, has been touted as the “snowiest ski resort in Wisconsin,” a court filing in its bankruptcy case said, adding that Whitecap Mountain annually gets “some of the highest snowfall in the state making for excellent conditions and regular powder days.”
However, the past two winters have brought little of the snow that built the resort’s reputation.
Snowfall at the resort plummeted from 260 inches in the 2022-2023 season to less than 30 inches the next winter, slashing revenue from roughly $1.4 million to about $197,000, the court papers said. The most recent season brought less than 60 inches of snow and only about $532,000 in total revenue.
“The low revenue in 2023 put the Debtor in a position where it needed additional funding to cover its revenue shortage,” said the filing. “While the Debtor survived the 2023-24 season, it required short-term financing to bridge the gap until the next ski season and payoff several expenses.”
Lender declared resort ‘in default’
The resort — which is all-season, but known for its skiing — turned to private lender Brighton Asset Management for a short-term loan to help it get by. Another “slow” 2024-2025 season prevented the resort’s owner from extending or refinancing the loan, the court papers say.
Brighton said Midwest Skiing Company was “in default” on about $1.86 million in debt and, through a lawsuit, moved to foreclose on the resort’s property, according to the court motion seeking approval to use cash collateral.
A court ruled in favor of Brighton in August.
Midwest Skiing Company filed a Chapter 11 bankruptcy “to put a stop to the collection efforts and speculation within its community and among customers over the upcoming snow season,” the filings said.
“The automatic stay under the bankruptcy code stops Brighton from moving forward with collection through foreclosure or replevin,” attorneys for Midwest Skiing Company wrote in the filing.
Customers and employees “can be confident,” the filing said, that Midwest Skiing Company “will retain control and continue operations through the upcoming snow season.”
In its bankruptcy petition, Midwest Skiing Company estimated its assets as between $1 million and $10 million, with the same range for its estimated liabilities.
Attorneys for the company wrote in court papers that the Chapter 11 filing “provides a path forward” for the resort “to continue its operations for years to come under a plan of reorganization.”
The court papers say that Midwest Skiing Company — which has been owned by ski and hospitality industry veteran David Dziuban since 2008 — merged this week with Glebe Mountains, Inc., allowing for a “more efficient and less costly reorganization.”
Attorneys for Midwest Skiing Company and Brighton did not immediately respond to requests for comment by Business Insider on Friday.
