Bluegreen Vacations Corporation Enters into Settlement with Bass Pro to Reinstate Marketing Activities at all Retail Stores and Extend into the over 75 Cabela Retail Stores
BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) ("BBX Capital"), announced that Bluegreen Vacations Corporation (NYSE: BXG), which is 90% owned by BBX Capital, issued the following press release. Please see the Bluegreen press release below.
About BBX Capital Corporation: BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) is a Florida-based diversified holding company whose principal investments include Bluegreen Vacations Corporation (NYSE: BXG), BBX Capital Real Estate, Renin Holdings, and IT’SUGAR. For additional information, please visit www.BBXCapital.com.
BBX Capital Corporation Investor Relations Contact:
Leo Hinkley, Managing Director, Investor Relations Officer
June 13, 2019
BOCA RATON, Fla.--(BUSINESS WIRE)-- Bluegreen Vacations Corporation (BXG) and its subsidiaries (“Bluegreen”) announced today that Bass Pro Inc. and its affiliates (Bass Pro”) and Bluegreen have settled their prior disputes and have amended their Marketing and Promotions Agreement that will reinstate Bluegreen’s access to Bass Pro’s marketing channels, including all marketing activities in Bass Pro retail stores and extend into the Cabela’s retail stores.
The parties have entered into a Settlement Agreement and Amendment which provides that:
- Bluegreen will pay Bass Pro the following amounts as a settlement of all prior claims, with no admission of wrongdoing:
$20 million within 15 days of the execution of the Settlement and Amendment;
$4 million each January 1st starting in 2020 through 2024 (a total of 5 payments in the amount of $4 million each); and
Bass Pro will keep the remaining $1.5 million of an amount prepaid to them earlier in 2019 under the Marketing and Promotions Agreement.
- In lieu of the existing generation commission, Bluegreen will pay Bass Pro a fixed annual fee of $70,000 for each Bass Pro and Cabela’s store that Bluegreen is accessing plus $32.00 per net vacation package sold (less cancellations/refunds). The fixed annual fee will be prorated for 2019. The Settlement and Amendment includes provisions regarding minimum numbers of stores that Bluegreen will be obligated to pay for, as well as provisions under which the minimum number of stores will be reduced.
- Bluegreen and Bass Pro agree on specific enhancements to its customer service policies and procedures, as well as an enhanced complaint resolution process.
- Bluegreen and Bass Pro will continue expansion of the Bluegreen/Big Cedar Vacations, LLC joint venture and have modified certain terms of the operating agreement of the joint venture, including that Bluegreen will continue to sell tours to the joint venture at agreed-upon costs.
- Bluegreen will become a supporter of the not-for-profit Wonders of Wildlife Foundation with a portion of proceeds from net vacation packages sold being donated to the cause, subject to a minimum annual donation of $700,000.
- The parties agree to resolve any future disputes thru a binding arbitration process under the Judicial Arbitration and Mediation Services, Inc. (JAMS) process.
- The parties executed mutual waivers and releases and have agreed to the dismissal of the pending litigation.
“We look forward to building on our 19-year partnership with Bass Pro, through which we have developed close to 700 units in our joint venture at three luxury resorts and together built a successful marketing partnership in their stores,” said Shawn B. Pearson, President and CEO of Bluegreen. “We are excited about our ability to expand into Cabela’s locations, which will further cement our ability to grow and give their more than 200 million store visitors each year the opportunity to make memories at our resorts.”