In 2009, the historic Greenbrier Resort was bankrupt and days away from shuttering. Jim Justice stepped in to save the hotel by purchasing it and promptly investing in its development.
He saved the Greenbrier.
Now 17 years later, Justice is in the legal and financial fight of his life to maintain ownership of the resort. The Omni Hotel and Resorts chain, which controls over $300 million first-lien debt on the Greenbrier, is taking legal steps that could lead to Justice ceding ownership to White Sulphur Springs Holdings (WSSH), an affiliate of Omni.
Most recently, WSSH has asked a federal judge to put a receiver in charge of the Greenbrier and bar Justice and his family from the property. WSSH argues that this action is essential due to the widespread knowledge of the Justices’ dire financial situation and their habitual diversion of revenue from the Greenbrier to cover other expenses.
Justice, through his attorney, contends that just days ago there was an agreement whereby Omni and Justice would split ownership of the Greenbrier 50-50. But Justice claims the next day Omni pulled out of the agreement and is now “attempting to snatch the Greenbrier resort from local ownership of the Justice family.”
(More from Brad McElhinny here, here and here on the ongoing legal fight.)
What a mess and, as usual, lawyers will clean up all details. However, the two most important things here are: The fate of the more than 1,000 individuals who work at the Greenbrier and assorted properties, and the continued operation of the famed resort.
The Greenbrier has a rich history. It was founded in 1787 as a healing oasis because of its spring waters. Over the years, it has hosted countless dignitaries, including five sitting presidents and world famous celebrities. It has twice served as a hospital for recuperating wounded soldiers.
It is a gem in the mountains of our state. The luxury accommodations mean the prices are beyond the reach of most West Virginians, but it has consistently served as a source of pride. The continued operation of this public treasure is important to our state’s history and our identity.
The Greenbrier is also a critical economic driver for the region. Tens of thousands of West Virginians have worked at the Greenbrier over the years. It is not unusual for someone to work at the resort their entire life. Frank Mosley, who died three years ago this month, was a beloved member of the Greenbrier staff for more than six decades.
Justice’s tenure as owner in recent years has been fraught with slow- and non-payment of bills, delayed tax payments, and a once-threatened ignominious sale of the Greenbrier on the county courthouse steps. That has sullied the famed resort’s reputation and created uncertainty for the dedicated employees who traditionally go out of their way to make guests feel welcome.
The current employees need stability, and if Omni’s allegations are true, the resort needs an influx of capital to restore the five-star luster to the property. It would also be a continued source of pride for our state if there were local ownership, if that were possible.
However, consider Omni’s capacity to perform the maintenance and upkeep they claim is necessary at the Greenbrier. The company operates 50 resorts nationwide and has invested $150 million in renovations at the nearby Homestead Resort in Virginia.
The Greenbrier Resort is at another critical juncture, just as it was 17 years ago. Back then, Jim Justice came to the rescue. Now he is clinging to what has become a significant part of his identity.
What is most important here, however, is not who owns the Greenbrier Resort, but rather how it is operated. Hopefully, it can continue attracting individuals and groups willing to pay for a luxury experience and remain a cherished attraction for its staff and our state.