Robb & Stucky is the Latest Example of the Rollercoaster Ride of Timeshare February 21, 2011
Posted by John Stephens in : ARDA, News & Events , trackbackThe latest example of the unpredictable nature of the timeshare industry these days can be seen through the eyes of Robb & Stucky Interiors.
Within a seven day span, Robb & Stucky was named as an award finalist for the Resort Design Division of the American Resort Development Association’s (ARDA) annual Awards Program, then announced they filed for Chapter 11 bankruptcy protection.
One week, you’re celebrating the recognition of one of the most prestigious industry award programs in the world. The next, you can’t even write a check to pay the bills.
Is there a more accurate scenario that describes the current state of the timeshare industry?
Industry spokespeople have been telling us for months that things are beginning to turn around. Indeed, tourism numbers are up and optimism has started to return to a timeshare industry that has seen sales numbers plummet by over 30% in one year, in 2009. The industry has started to stabilize. However, there are casualties of the recession and Robb & Stucky appears to be one of them.
Yes, it is too early to tell how this bankruptcy filing will affect the company, if at all. They may come out of it lean, strong and ready for growth. On the other hand, they may never reach the success they once had if the company is sold and new management takes over. This is a business that is dependent on the creative minds that help design the resorts of the future. Brain-drain could be a real problem for them if they cannot afford to keep their best people from leaving their ranks.
Who knows for sure? And that’s the rub for the entire industry at the moment.
According to a recent press release, Robb & Stucky claims that “the company’s Hospitality Design Division has completed domestic and international commercial design assignments for hotels, condominiums, timeshare and fractional resorts located from Denver to Dubai.” This is a well-respected company which has built up years of industry good will and designed some of the top creative projects in the world for name brands such as Bluegreen, Westin, and Hyatt. However, resorts hit the brakes on construction during the recession and new development has not returned. Judging from their latest announcement, renovation work has not been as brisk as first thought, as many of the design and construction companies have been relying on redevelopment to keep them afloat until the new projects are resurrected.
If it can happen to them, then who else could be next?
This is a symptom of an industry just coming off of life support after the train wreck of 2008 and we wish the good people at Robb & Stucky the best of luck.
However, the good news is that the lack of new sales activity puts a premium on the timeshare resale market and the weeks that are available at great prices.
People are still looking to buy timeshare and more potential buyers are discovering the deals to be made on the resale market. You can find those deals on the BuyaTimeshare.com website.
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