As previously announced, Maui Land & Pineapple (MLP) has pulled out of the pineapple business completely at the end of 2009. The culmination of MLP restructuring has cost 285 pineapple cultivation workers their jobs after a year of turmoil for a company desperately trying to remain in business.
Early in 2009, MLP started selling assets like their Plantation Golf Course, which drew $50 million, to try to pay off growing debts. Then in February, MLP announced it would be laying-off around 100 employees at the Kapalua Resort and at the Kahului headquarters. Moreover, employees who managed to keep their job were required to swallow a 10 per cent pay cut. Unfortunately, the company’s woes did not end there and in May then President and Chief Executive Officer Robert Webber resigned after a short 6 months in the position and board Chairman Warren Haruki stepped up as the interim CEO.
Still, the company continued its dive into the red and reportedly had lost nearly $93 million by October; even more than the $71.6 million they had lost in 2008. For the most part, losses were blamed on a struggling Maui real estate market which saw the value of MLP real estate investments nose-dive. Moreover, all the company’s investment in Kapulua Bay Holdings was also lost as well.
Nevertheless, when the news dropped last November that MLP would end pineapple operations, employees and community members alike were somewhat shocked. For the most part, people had hope that a resolution would be found and that operations would continue. Sadly, this was not to be and pineapple operations officially ended in December 2009.
Perhaps what’s even more surprising is a report by auditors that reflected serious doubts that MLP would be able to stay in business at all. A report filed by the company with the Securities and Exchange Commission outlines the problems faced by the struggling company; yet, MLP officials are holding on for an improved economy and are hoping to reverse their financial woes through a secondary equity proposal to current stakeholders.
Some good news has come from this story, however. At the end of 2009, the recently formed Haliimaile Pineapple Co. announced plans to take over MLP pineapple farming operations saving 65 or more jobs.
Posted in Maui Real Estate, Hawaii Real Estate |
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