Snowless winters are a bummer for skiers and riders, but for resort operators, they can spell disaster. Wisconsin’s Whitecap Mountains Resort (WMR) is learning that harsh truth firsthand. On Nov. 19, the resort, once named the “snowiest” ski area in the state, filed for Chapter 11 bankruptcy protection after two consecutive low-snowfall seasons torpedoed its revenue.
During the 2022/23 ski season, the resort saw a whopping 260 inches of snowfall. But in the 2023/24 season, just a year later, WMR’s winter precipitation dropped to less than 30 inches.
According to court papers, WMR’s revenue plummeted 86% that year, from $1.4 million to just $197,378. In order to keep its doors open, WMR’s parent company, Midwest Skiing Company (MSC), took out a loan with Brighton Asset Management, banking on the prospect of more snow in 2024/25.
However, last season, WMR got skunked again. The resort received less than 60 inches of snow, and its revenue for the year was just $532,639.
“The revenue was insufficient to service its debt — primarily with its largest secured lender, [Brighton],” Evan Schmit, an attorney for MSC, told GearJunkie.
In turn, Brighton filed a lawsuit seeking to liquidate WMR’s property to settle its remaining $1.86 million in debts. To avoid that fate, WMR filed for Chapter 11 “to stop those collection efforts and preserve the value of its business,” Schmit said.
Not the Only Resort Facing Climate Change Challenges
According to snowfall data collected in 2015, WMR was once the “snowiest” ski resort in Wisconsin. Court documents also assert that “Whitecap Mountain annually receives some of the highest snowfall in the state, making for excellent conditions and regular powder days.”
However, that has become less predictable.
For two consecutive seasons, WMR has received significantly below-average snowfall levels — and it is not alone. A 2020 report from Climate Central, an organization that tracks climate change trends, found that 64% of 2,041 observed locations in the U.S. see less snowfall now than they did in the early 1970s. The same study found that snowfall increased in just 36% of observed U.S. locations.
That is forcing resorts like WMR to make tough decisions. In 2023, New Hampshire’s Black Mountain announced that it would be shutting its doors, due to staffing shortages, energy costs, and — you guessed it — unpredictable weather and snowfall. Luckily, the same year, Indy Pass stepped in and bought Black Mountain, saving it and turning it into the nation’s first co-op ski area.
Similarly, during 2023/24, ski resorts in Cedar Pass, Calif., Ski Cloudcroft, N.M., Sitzmark, Wash., and both Covington and Sault Ste. Marie, Mich., all remained closed for the season due to a lack of snowfall. In 2024/25, Badger Pass, Calif., and Teton Pass Ski Area, Mont., were both unable to open for the same reason.
With less snow on average and less predictable snowfall, ski area operators are feeling the pressure. In the case of WMR, it was almost the end of the story — but not quite.
‘Breathing Room’ for Whitecap Mountains Resort
Now that WMR has filed for bankruptcy, Schmit explained that an immediate court-ordered injunction, known as an “automatic stay,” has been triggered. That effectively freezes all collection efforts, including Brighton’s lawsuit, and gives WMR “breathing room to reorganize.”
Meanwhile, WMR hopes to continue operations as normal this year. It will not be closing its doors due to the bankruptcy filing. Instead, it hopes to recoup some of its losses and continue providing its community with a place to ski and ride.
“Short term, the bankruptcy filing ensures that [WMR] remains open for business,” Schmit said. “Long term, a plan of reorganization protects [WMR] for years to come by restructuring its debt to improve cash flow. Businesses facing financial distress are scraping [by] each day. With improved cash flow, [WMR] will be able to plan for the future.”
According to court documents, WMR’s parent company, MSC, also recently merged with Glebe Mountains, Inc., which it hopes will help facilitate a “more efficient and less costly reorganization.”
The real question is: Will it snow at WMR this year?
As of now, the resort’s projected opening date for the 2025/26 season is December 20. While there is no reported snow on the mountain yet, there’s still plenty of time before WMR’s planned opening.
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