Sea Trail closing delayed
until late February or early March

By Shane Sharp,
Contributing Writer

SUNSET BEACH, N.C. (Feb. 6, 2003) – The closing date for the sale of Sea Trail Plantation and Golf Links has been pushed back to late February or early March, according to a spokesman for Signature Horizons, Inc. The Atlanta based corporation purchased the multi-course facility for $45 million in early December and a preliminary closing date was set for early January.

Signature Horizons executive vice president John Mansfield told MyrtleBeachGolf.com that a new date had been set for Feb. 28, but that additional circumstances could push the closing into early March. Mansfield said that the delays where due to the numerous details involved in solidifying such a large deal.

Meanwhile, Sea Trail’s existing ownership group could be facing a legal battle with a number of former employees. MyrtleBeachGolf.com has learned that a group of ex-employees are considering legal action for alleged unfair labor practices. From July to December 2002, at least 16 Sea Trail employees were either fired or cajoled into resignations, according to statements obtained from former employees.

The terminations included Sea Trail’s general manager, room division manager, director of golf, head professional, head superintendent, executive chef, restaurant manager and a number of other middle management positions. At least two other employees resigned, claiming that they could not work under the conditions provided by the existing owners.

Mansfield said that Signature Horizons was not privy to the details regarding these terminations, but was aware that Sea Trail’s owners had hired a consultant team to evaluate operational efficiency and make recommendations for managerial improvements. One former Sea Trail employee told MyrtleBeachGolf.com that the consultants were merely brought in to assist the owners in drastically reducing the resort’s payroll before the property went on the market.

“About six months ago we were told that a consulting team was coming in to make some suggestions for improvements to make us a better resort,” said Ann Willis, Sea Trail’s banquet manager for over six years. “The first thing they said in our first meeting was ‘We are the kings and Sea Trail is our castle.’ Instead of helping the existing workers get better, they went through and fired everyone over a certain salary amount. Then they made everyone sign a letter saying that they would keep quiet or they would lose their jobs.”

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Willis claims she was essentially forced to resign when five members of her banquet staff were fired and no additional help was provided by the existing owners. According to Willis, these five employees were illegal aliens who had been cited in the past by the Social Security Administration for use of bogus Social Security numbers. She also claims that at least 20 additional Hispanic employees were using the Social Security numbers of deceased U.S. citizens. Those 20 were not terminated, Willis says, so they could continue to assist with maintenance of Sea Trail’s three 18-hole golf courses.

Former Sea Trail superintendent Terry Vassey would not comment on his recent termination or Sea Trail’s golf course maintenance program. However, Willis and two other ex-employees say that Vassey’s firing was “shocking” and that he was the “man who had made Sea Trail’s golf courses look better than they had in years.”

Vassey, a Ph.D., also taught continuing education classes at Brunswick Community College. He is well-respected among his peers and in his profession according to Patrick Crean, general manager at neighboring Crow Creek Plantation in Calabash. Crean hired Vassey last week as an assistant superintendent and was similarly shocked about his brash termination from Sea Trail.

“I couldn’t believe he was available and neither could my super,” Crean said. “But we’ll take him while we can get him and learn from him while we are at it.”

If the sale closes, Signature Horizons, Inc. would assume ownership of the 2,000-acre property, its three golf courses, two clubhouses totaling 42,000 square feet, a recently completed 32,000 square foot full service conference center with an adjoining hotel site, as well as the property underlying the Oyster Bay Golf Club, which is also owned by Sea Trail.

The $45 million price tag was determined by the resort’s profit margin over the past nine years – an industry standard for golf property valuation. Signature Horizons Inc., CEO Ronald Potts stated in a Dec. 17 press release that he expects annual revenues of approximately $25 million and first year profits to be in excess of $5 million. But sources close to MyrtleBeachGolf.com say that the property is in need of at least $10 million worth of upgrades and repairs to its street system, golf course irrigation systems and physical plant.

“We brought in consultants to go over it with a fine tooth comb,” Mansfield said. “We think it is an incredible property that is in excellent condition.”

Mansfield said that any future legal action taken against the current Sea Trail owners would not affect Signature Horizons, Inc., as they are purchasing the assets of the property and not the Sea Trail Corporation.

“I just spoke with the owners and they are not aware of any pending or future legal action,” Mansfield said. “But if there is any, we will not be involved with it.”