Wisconsin’s ‘snowiest’ ski resort files for bankruptcy in a bid for survival
**Whitecap Mountains Resort Files for Chapter 11 Bankruptcy Amidst Snowfall Crisis**
In a significant development for winter sports enthusiasts in Wisconsin, the Whitecap Mountains Resort, a beloved ski destination since the 1960s, has filed for Chapter 11 bankruptcy protection. The resort, known for its extensive 43 ski runs spread across 400 acres, has been a staple for ski lovers, historically boasting the title of the “snowiest ski resort in Wisconsin.” However, the past two winters have delivered a harsh reality, with “extremely low” snowfall drastically impacting the resort’s revenues. According to court documents, snowfall plummeted from an impressive 260 inches during the 2022-2023 season to a mere 30 inches the following winter, resulting in revenues dropping from approximately $1.4 million to just $197,000. The most recent season didn’t fare much better, with less than 60 inches of snow and total revenues of around $532,000.
The resort’s financial struggles were exacerbated by a short-term loan from Brighton Asset Management, which was intended to help the resort navigate its cash flow issues. However, a lack of snowfall during the 2024-2025 season led to a default on approximately $1.86 million in debt, prompting Brighton to seek foreclosure on the property. In response, Midwest Skiing Company, which operates the resort, filed for Chapter 11 bankruptcy to halt these collection efforts and provide stability for its customers and employees. The filing aims to facilitate a reorganization plan that would allow the resort to continue operations and maintain its status as a key player in the local skiing community. The company has estimated its assets and liabilities to be between $1 million and $10 million, indicating a challenging but manageable financial situation.
In a bid to streamline operations and reduce costs, Midwest Skiing Company recently merged with Glebe Mountains, Inc., a move that attorneys believe will enhance the resort’s chances of recovery. The court’s approval of the bankruptcy filing is expected to provide the necessary breathing room for the resort to regroup and prepare for the upcoming ski season. As the community rallies around this iconic destination, the hope is that with strategic planning and improved weather conditions, Whitecap Mountains Resort can reclaim its position as a premier winter sports destination in Wisconsin.
A Wisconsin ski resort has filed for Chapter 11 bankruptcy protection.
Tatiana Golovkina/Getty Images
A decades-old Wisconsin ski resort has filed for Chapter 11 bankruptcy protection.
Back-to-back winters of “extremely low” snowfall gutted the resort’s revenues, lawyers said.
The Chapter 11 filing “provides a path forward” for the popular Whitecap Mountains Resort.
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.
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