Firinn Golf Group has signed a purchase-and-sale agreement to take over ownership of the property, which opened in 1923 and will face bankruptcy if the sale does not go through. If the sale is approved, Firinn Golf Group plans “to create a casually upscale clubhouse that embraces the charm of Vermont, the history of the club, and modern amenities that are attractive to young and old alike.”

St. Johnsbury (Vt.) Country Club is expected to swing into bankruptcy and closure for 2017 if its shareholders in March reject a standing $850,000 purchase offer, the Rutland (Vt.) Herald reported.

“If a majority of the shareholders does not approve the sale of the course, the board has no choice but to either enter into a voluntary foreclosure with the bank holding the main mortgage on the club, or to file for Chapter 7 bankruptcy, i.e., liquidation of assets,” stated a recent letter to shareholders from the club’s Board of Directors. “It is unlikely that the course will open in the spring.”

Shareholders on March 1 will vote the purchase offer up or down. If the sale is affirmed the club is expected to open this spring, however, the board of directors may still file for bankruptcy, the Herald reported.

“This buyer is ready to proceed and intends to open the course in the spring,” according to the letter. “The sale price will pay the secured debt of the club, most of which is owed to Union Bank, and a small outstanding loan to Passumpsic Bank. It will also pay the costs of the transaction, including real estate commissions and attorney fees. The balance remaining will be paid over to unsecured creditors, which include all unsecured loans, trade creditors, and debenture holders. The likelihood of significant payout to any of the unsecured creditors is quite low. It is likely that after the sale is completed, the club may file bankruptcy.”

The board of directors last year, faced with financial problems, contacted a bankruptcy attorney and marketed the property with Connecticut-based Essex Golf Group. The firm quickly landed interest from Fresh Water Industries doing business as Firinn Golf Group, which is based in Palm Coast, Fla., but has a Fort Mill, S.C., mailing address, the Herald reported.

“We have spent the last months in discussions with them and we have signed a purchase-and-sale agreement,” according to the club’s letter to shareholders.

Ted Dinkel, the club’s vice president, declined to elaborate beyond the letter. Dinkel said the club’s closure for 2017 is all but imminent if the sale fails. He sees no other route to operation than new ownership, the Herald reported.

Shareholders are likely to support the sale judging by input from three of them this week. “The main thing is we’ll still have that fine course to walk on,” said Jim Kennedy, a 58-year member of the club. “The physical stature of the course, its condition, is equal to anything in the state of Vermont. Everybody was very hopeful that something would be resolved and the club would stay open.”

Burke resident Tom Manges, a country club shareholder and a former board member, is thankful for the purchase offer. “I’d like to see the club stay in as great a shape as it has been for the past 25 years,” Manges said. “I hope that doesn’t change.”

The club opened in 1923 with nine holes designed by Willie Parks Jr. The back nine was added in 1992, the Herald reported.

Firinn Golf Group, the prospective purchaser, issued a lengthy statement loosely detailing its intent at St. Johnsbury Country Club if sale is approved: “We are prepared to invest in the clubhouse and make improvements to the facility that will create a more inviting environment for members and guests,” it states. “Our focus will be to create a casually upscale clubhouse that embraces the charm of Vermont, the history of the club, and modern amenities that are attractive to young and old alike. An inviting bar and dining area is essential. How we prioritize, and the direction of our investment, will be impacted greatly by member and guest feedback. Some of what we do will be a direct reflection of member feedback, and some changes will be made because in our experience as golf course operators they are just solid common sense changes that need to be made to support a fluid and efficient golf operation.”

The company’s priority for St. Johnsbury Country Club is economic sustainability and top-notch maintenance, Firinn stated. The company furthermore aims to reverse the club’s declining membership roll. The club currently includes about 200 members, down from 500 in the 1990s. The decline created the club’s present financial predicament, the Herald reported.