Whitecap Mountains Resort Files For Chapter 11 Bankruptcy Following "Tumultuous" Years

Whitecap Mountains Resort, a historic ski destination in northern Wisconsin known for its rugged terrain and deep powder, has filed for Chapter 11 bankruptcy protection. The filing comes as a strategic move to halt foreclosure proceedings and keep the lifts spinning for the upcoming 2025-2026 season after a series of financial blows and environmental challenges.

Midwest Skiing Company LLC, the resort’s owner, filed the petition on Wednesday, November 19, in the U.S. Bankruptcy Court for the Western District of Wisconsin. The filing marks the climax of what has been a chaotic period for the resort, dating back to a devastating fire in 2019 and compounded recently by back-to-back winters with record-low snowfall.

A Perfect Storm of Challenges

While the resort has long been touted as the "snowiest ski resort in Wisconsin," the past two years have painted a starkly different picture. According to court filings, snowfall at the resort plummeted from a healthy 260 inches in the 2022-23 season to less than 30 inches the following winter.

The impact on the bottom line was catastrophic. Revenue reportedly dropped from approximately $1.4 million to just $197,000 during the snow-starved 2023-24 season. The most recent 2024-25 season saw little improvement, with less than 60 inches of snow and roughly $532,000 in revenue—figures insufficient to sustain operations and service debt.

"The low revenue in 2023 put the Debtor in a position where it needed additional funding to cover its revenue shortage," said the filing. "While the Debtor survived the 2023-24 season, it required short-term financing to bridge the gap until the next ski season and payoff several expenses."

The revenue collapse led to a default on a $1.86 million short-term loan from Brighton Asset Management. In August, a court ruled in favor of the lender, paving the way for foreclosure. The Chapter 11 filing automatically stays these proceedings, preventing the seizure of assets and allowing current management to remain in control while they restructure their finances.

A Legacy of Turmoil

The bankruptcy is the latest hurdle in a "tumultuous few years" for the resort, located in the Penokee Range.

In January 2019, a massive fire destroyed the resort's main lodge, a historic structure that housed the restaurant, bar, and rental shop. The loss was compounded by a legal battle over insurance coverage. It was revealed that the resort’s insurance policy had been cancelled for non-payment prior to the blaze, leaving Whitecap to shoulder the millions of dollars in rebuilding costs out of pocket.

Despite these setbacks, owner David Dziuban, who took sole ownership of the resort in September 2022, has fought to keep the operation alive. The resort has since merged with Glebe Mountains, Inc. in an effort to streamline the reorganization process.

Open for the Season

Despite the legal maneuvering, resort officials are projecting a "business as usual" message to skiers and snowboarders. The filing includes motions to continue paying employee wages and to honor season passes and merchant agreements, signaling a commitment to opening for the impending winter.

"The Chapter 11 filing provides a path forward," attorneys for Midwest Skiing Company wrote in the court documents, stating that the move will allow the resort "to continue its operations for years to come under a plan of reorganization."

Whitecap Mountains, which originally opened in the 1960s, spans three mountains and offers 43 trails across 400 acres. For now, the resort remains open for reservations, banking on a return of the region's legendary snow to help dig it out of debt.