Well, the time has finally come. After much speculation and months of rumors, the tight lipped Sea Island Company has finally disclosed that they have filed for Chapter 11 Bankruptcy in Federal Court in Brunswick. Sea Island had hired Goldman Sachs Group in February to assist in finding a buyer for the troubled resort and real estate development company.

Sea Island has been under the control of the Jones family since the 1920′s.  Bill Jones III had grand visions of Sea Island and wanted to cater to a more international clientele than in times past. In 2004 Sea Island undertook a $500 million dollar renovation/construction project which included a gorgeous new Cloister Hotel and a new 65,000 square foot, 5 star spa and fitness center. Sea Island depended heavily on real estate sales in Frederica Township, a tract of land on the north end of St. Simons Island with a top of the line golf course, lake, clubhouse and residential lots starting out with a price tag of $1.5 – $2 million dollars. Some would say Jones got caught in the perfect storm. With a declining real estate market, fewer vacationers and few sales in Frederica, Sea Island began to fall behind on many of its obligations. Ultimately, they were unable to repay $600 million dollars worth of debts.

Avenue Capital Group and Oaktree Capital Management LP were able to purchase the famed resort for $197.5 Million. The sale will include the Sea Island Club, Ocean Forest Golf Club, 4 golf courses, The Lodge which has 40 rooms and suites itself, and more.  Upon approval of the sale by the bankruptcy judge, this sale should put a lot of negative talk in the rear view mirror. In a closed meeting held on August 11, Jones put a positive spin on the sale and personally apologized for the events of the last year. The Sea Island Company means a tremendous amount to this area. The company is the largest private employer in Glynn County and has a large effect on the St. Simons real estate market and the area as a whole. Jones will remain the leader and CEO of the company into the future. Having some resolution to these problems is a big relief to not only all Sea Island Club members but to all residents of the Golden Isles.