January 28, 2013 was when the music stopped for LodgeNet Interactive, at least as we knew the firm. That was when LodgeNet declared bankruptcy, with a plan for re-capitalization under new ownership, Colony Capital, in place. The stockholders lost all of their equity, but the stock was priced for that, having traded at less than five cents per share since December 31. Major shareholders that bore the brunt of the bankruptcy filing included officers and directors of LodgeNet as well as a secretive Boston hedge fund called PAR Capital Management, the largest shareholder.
That is too bad for the owners of the stock. They took a financial risk and lost. Also feeling the pain were numerous loyal LodgeNet employees forced to move on to the next phase in their careers. These people and their families have had to bear the disruption and anxiety of an unplanned job change, typically after many years of service at LodgeNet. The hundreds who remain at LodgeNet also experience a great del of anxiety and dismay seeing long-time colleagues exiting, by choice or otherwise, and wondering about their own jobs.