West Virginia's Iconic Greenbrier Resort Faces Auction as Governor Fights to Save Jobs and Economy
Governor’s Greenbrier Hotel Faces Auction Amid Health Coverage Crisis
West Virginia Governor Jim Justice is embroiled in a legal battle to prevent the auction of The Greenbrier, a historic luxury resort, as unpaid debts threaten employee health coverage and the local economy.
Approximately 400 employees at The Greenbrier received a letter warning of potential loss of health coverage on August 27 unless $2.4 million in missing contributions are paid. Coincidentally, this is the same day the hotel is scheduled for auction.
Attorneys representing the Justice family argue that the auction would have severe economic consequences and jeopardize jobs in the region. The legal dispute has brought to light a series of financial issues plaguing the resort.
The Justice family has reportedly failed to make health fund contributions for four months, with an additional $1.2 million soon to be due. More concerning, some contributions were allegedly deducted from employees’ paychecks but not transferred to the health fund, prompting union officials to express disappointment and concern over the delinquency.
The situation has drawn political attention, with Democrat Glenn Elliott criticizing Justice on social media. This incident adds to Justice’s history of late payments on debts and fines for unsafe working conditions.
Justice, who bought The Greenbrier out of bankruptcy in 2009, has seen the hotel host U.S. presidents, royalty, and a PGA Tour tournament. However, financial troubles have persisted, with The Greenbrier Sporting Club, also owned by the Justice family, facing a delayed auction due to defaulted business loans.
The upcoming auction involves 60.5 acres, including the hotel and parking lot. It stems from JPMorgan Chase selling a longstanding Justice loan to McCormick 101, which subsequently declared it in default. Justice’s legal team contends that a 2014 deed of trust is defective and that the auction violates the company’s obligation to act in good faith.
As the situation unfolds, neither the Justice family’s attorneys nor Greenbrier CFO and Treasurer Adam Long have responded to requests for comment. The story continues to develop, with potential far-reaching implications for employees, the local economy, and the future of this iconic resort.
