Drive Shack Inc. Provides Business Update Amidst Coronavirus Situation
March 25 2020 - 8:30AM
Business Wire
As part of Drive Shack Inc.’s (NYSE: DS) ongoing efforts to
protect guests and employees in light of the COVID-19 health
crisis, the company has temporarily closed all Drive Shack venues
and the majority of its American Golf courses.
"Over the past several weeks, we have been navigating the
rapidly evolving situation related to the COVID-19 outbreak,
keeping the health and safety of our associates, managers and
guests top-of-mind. Like other venue operators across the country,
we have been forced to take immediate action in the most difficult
of ways,” said Hana Khouri, Chief Executive Officer and President
of Drive Shack.
Alongside the venue and course closures, Drive Shack made the
difficult decision to furlough nearly all venue level hourly
associates and managers, along with a significant number of the
corporate team, with the expectation that each will be able to
return to their existing positions when operations resume. Similar
actions were taken by American Golf.
The majority of the company’s traditional golf courses are
located across California and New York, where state and local
health authorities have issued “shelter at home” orders and similar
mandates requiring the closure of food and beverage operations. The
company employs more than 4,500 people in the United States, the
vast majority of which earn an hourly wage.
“While we cannot predict today how long this will last, we
believe that the impacts to our business are temporary. We cannot
wait to bring all our people, guests and employees, back together
again at our Drive Shack stores and the American Golf courses,”
Khouri continued. “In the meantime, the remaining team is committed
to working tirelessly every day to ensure our company is positioned
for nothing but success when we reopen our doors. We are confident
that we have the expertise and the resources to weather this
unprecedented time.”
To help offset lower revenues associated with the closures,
Drive Shack has also taken steps to substantially reduce and defer
costs related to marketing, game development and new site
selection. Additionally, the company has reviewed its capital
expenditure and development program and plans to defer spending
until there is more visibility into when the venues and golf
courses will reopen.
About Drive Shack Inc.
Drive Shack Inc. is a leading owner and operator of golf-related
leisure and entertainment venues.
Forward-Looking Statements: Certain items in this Press
Release may constitute forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on management's current expectations and
beliefs and are subject to a number of risks, trends and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements, many of
which are beyond our control. We cannot give any assurances that
management’s current expectations will be attained. For a
discussion of some of the risks and important factors that could
cause actual results to differ materially from such forward-looking
statements, see the sections entitled “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in the Company’s periodic reports filed with
the Securities and Exchange Commission (“SEC”), which are available
on the Company’s website (http://ir.driveshack.com). In addition,
new risks and uncertainties emerge from time to time, and it is not
possible to predict or assess the impact of every factor that may
cause actual results to differ from those contained in any
forward-looking statements. Accordingly, you should not place undue
reliance on any forward-looking statements contained in this Press
Release. Forward-looking statements speak only as of the date of
this Press Release. We expressly disclaim any obligation to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in expectations with regard
thereto or change in events, conditions or circumstances on which
any statement is based.
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version on businesswire.com: https://www.businesswire.com/news/home/20200325005368/en/
Austin Pruitt Head of Investor Relations IR@driveshack.com
Drive Shack (NYSE:DS)
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