About two hours after Baha Mar filed for bankruptcy in the United States yesterday, scores of employees packed their belongings and left the Cable Beach property for what some feared was their last time.
When The Nassau Guardian arrived at the resort, some workers were leaving the building clutching their possessions. Others left with company files, vowing to continue to work from home.
Though some of them expressed hope, others were pessimistic.
One woman, who didn’t want to give her name, said she doubts that Baha Mar would pay her “to kick my legs up at home and watch TV”.
“It’s not going to happen,” she said. “My next pay check will probably be my last.”
Though Baha Mar has committed to “fund the payroll” of its employees “for a period”, Baha Mar chairman Sarkis Izmirlian warned employees yesterday that the resort may have to engage in workforce reductions if it fails to reach an agreement with its lender “immediately”.
Izmirlian sent the letter to hundreds of employees advising them of the current situation. He also advised them not to return to work. But he did not indicate if and when they would return.
There are approximately 2,000 employees at Baha Mar. The Nassau Guardian understands that the majority of them were sent home.
Another employee said she and others were shocked when they read the letter, despite the challenges at Baha Mar.
“We were not prepared,” she said. “We didn’t see this [coming] at all. They didn’t tell us earlier today. We just saw the letter just now. They said everyone must go home so we’re leaving. I’m taking my work with me actually.”
The employee said she hopes to keep her job.
“I said we have faith in Baha Mar,” she said.
“We have faith in our owners and we know that they’re going to open it eventually, but for now we’re just going to go home.
“We’re going to be called back when things progress and when they have decided on what they are going to do but we’re still going to be getting paid. That’s a blessing.”
Another employee, who said she had just been reassigned, said she’s unsure what her future with Baha Mar will be.
“I will probably have to start looking for a job again,” she said.
Izmirlian said his employees should not lose hope.
“Many of you know that I fight for what I believe in,” he said.
“From being together on this project, I know that you believe in Baha Mar and what it means for our community. Do not give up. I am not.
“Opening Baha Mar will be a great accomplishment and one of which I will do my best to make you a part.
“Please know I am committed to doing all I realistically can to complete and successfully open Baha Mar as a world-class destination resort that will attract guests from across the globe and serve as a key economic sparkplug in The Bahamas.”
Izmirlian explained that the financial consequences of repeated delays by the general contractor and the resulting loss of revenue has “left us with the need to choose a different path to provide us the time to put in place the capital structure and working relationships to complete and successfully open Baha Mar”.
He did not indicate when the resort will open.
The opening was originally set for December 2014, then March 2015, and then the first week in May.
Prime Minister Perry Christie warned over a week ago that Baha Mar could suffer payroll issues if its challenges are not resolved soon.
Izmirlian said one of the first actions under this new process has been to formally request the court overseeing the bankruptcy action to allow Baha Mar to continue paying wages and benefits as normal.
“Baha Mar will continue for a period to operate and fund payroll and we are also using the next few weeks to try and reach a consensual agreement with our bank lender,” he said.
“The Baha Mar project is dependent on our lender working with us immediately to achieve such an agreement.
“If an agreement cannot be reached we will have to make some extremely difficult decisions that would include workforce reductions. At this time we can’t speculate about what that may mean.”
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