By Denny Jacob
Scrutiny around Vail Resorts is growing.
Late Apex Partners, whose funds currently own shares in the hospitality company, said in a letter that Vail's performance over the last five years has been unacceptable.
"We believe Vail is fixable, but the board must act now to hold management accountable," Late Apex said. The financial firm noted its investment in Vail is its single largest position.
Late Apex criticized Vail's key performance indicators, insider compensation incentives, capital allocation strategy and balance sheet management.
The firm called for the ouster of Chief Executive Kirsten Lynch, Chief Financial Officer Angela Korch and Executive Chairman Rob Katz. It also said Vail should reset its board, cut its dividend by 80% and hire a proven CEO.
Vail didn't immediately respond to a request for comment.
Vail's troubles have been brewing for some time. The company recently disclosed it sold fewer season lift tickets than it did the year before. A 12-day ski-patrol strike closed most runs at Park City, Utah, infuriating customers. Competitors have also introduced rival multi-resort megapasses that function similar to Vail's Epic Pass, which offers unlimited access to 42 Vail properties around the world.
Shares rose 2% to $170 Monday. The stock is down roughly 23% over the last year and around 54% from its all-time closing high of $372.51 in November 2021.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
January 27, 2025 09:42 ET (14:42 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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